100 Level

Occam’s Razor and Investing

Establish Basic Principles of Investing What does Occam’s Razor* principle have to do with investing? Furthermore, what is Occam’s Razor?  The principle states that “Entities should not be multiplied unnecessarily.” The principle is attributed to the 14th century Franciscan friar, William of Ockham.  Isaac Newton stated the Occam’s Razor another way with this rule. “We are to admit no more causes … [Read More...]

Requesting Yield To Exceed 3.0%

This morning I had an article published over on Seeking Alpha.  One reader requested what would happen if one of the constraints was to seek a yield of 3.0% or higher.  Below is the Optimization Analysis that meets this request when using the 16 ETF portfolio. The add link function does not seem to be working this morning so below is the URL to the SA … [Read More...]

300 Level

“Creme List” Stock Additions For Special Index Oriented Portfolios

"Creme List" stocks have a history that goes back ten years or long before this blog was launched on February 14, 2008.  The original screen for "Creme List" stocks was a ranking system comprised of 20 to 25 metrics.  Many of the stocks were familiar names to investors.  I closed down that system when one or more data sources changed their format making it … [Read More...]

Madison Portfolio Update: 3 April 2013

Since the last update, shares of the financial sector (VFH) were added to the Madison.  As you will recall, the "Delta Factor" last showed VFH as a Buy and the Ranking Worksheet showed the same.  More on this below.  First we begin this review with the Madison Dashboard.  The Madison is one of three portfolios where all the transactions are not shown.  The other two are the Maxwell and Euclid.  … [Read More...]

200 Level

Lottery Foolishness

Who plays the lottery?  A recent news release revealed that lottery players earning $13,000 or fewer dollars per year, were spending 9% of their wages on lottery tickets. Yes - nine (9%) percent. Then I ran into this report when I was searching for more information on who plays the lotteries. Readers of this blog know that one does not fund a retirement plan by playing the lottery. What we … [Read More...]

How Does A Beginning Investor Use The ITARR Model?

When one has been saving and investing as long as I have, it is easy to forget many of the initial steps necessary to launch and manage a portfolio.  In this blog post, I will attempt to fill in a few gaps, and even with this effort, I will most likely miss something.  That is why I appreciate questions.  I am using the Gauss Portfolio as my model for several reasons.  1) It is … [Read More...]

400 Level

Sortino Ratio: Revised Calculation

Platinum members likely picked up my reference on the new Sortino Ratio (SR) calculation in the comments section.  When you first log on to ITA Wealth Management, be sure to check for the latest comments or better still, sign up for a comments RSS.  What is changing with the SR calculation? … [Read More...]

“Delta Factor” – What is it and is it useful?

Context is essential when developing an argument, and that is what this post on the "Delta Factor" is designed to do.  Rather than use ETFs in the "Delta Factor" argument, I selected 20 well-known stocks so I could dip back to the late 1900s for data.  Many ETFs we use did not exist in the late 1900s and early 2000s and most that did lack the necessary historical data … [Read More...]