100 Level

Happy Thanksgiving

Happy Thanksgiving   ITA Wealth Management wishes all readers a peaceful Thanksgiving. … [Read More...]

MEDA Trust Update

This is a thank you to all Platinum members for your continued support of ITA Wealth Management.  If you did not already know, 100% of your membership fees go toward funding new businesses in developing countries.  As of this morning 251 businesses are fully or partially funded with your help. This morning I made three full loans and one partial loan.  The partial loan went to a … [Read More...]

300 Level

Schrodinger Portfolio Review: 21 June 2013

Wow!  What a rocky market these last few days, and there is nothing to stop this from continuing.  If you are young and feeding your portfolio with new cash, this is the kind of market you are praying for as every dollar will purchase more shares.  For retirees, our prayers differ as we want the market to move higher to counter inflation and provide funds for living. While VTI "sneezed," it … [Read More...]

Charles Ellis: Revisit Loser’s Game of Stock Picking

Let's revisit* Charles D. Ellis' 1995 paper, "The Loser's Game," where he describes his Break-Even Return (BER) equation. Here is a review of this equation. * I checked the readership of this blog and only nine readers picked up this information.  That is too few so I am bringing this material forward in hopes more folks will walk through the math to see the importance of cost when operating a … [Read More...]

200 Level

Euclid Portfolio Update: 14 August 2012

Several changes occurred in the Euclid Portfolio since the last review.  I reduced the allocation to small-cap value and shifted the allocation to mid-cap and small-cap blend.  As Platinum members will see, I still do not have any holdings in these two asset classes as there is insufficient cash to make those purchases. … [Read More...]

Portfolio Performance Data for June 16, 2011

Asset Allocation Is Working The good news is that all eleven portfolio tracked using the TLH spreadsheet demonstrated the power of asset allocation by performing better than the VTSMX benchmark.  In almost every case, the Internal Rate of Return (IRR) for the portfolio also showed improvement when measured against the ITA Index. While the IRR for the portfolio and IRR for the ITA Index … [Read More...]

400 Level

Return and Risk Relationship

What is the relationship between return of a portfolio and the associated risk involved? Quoting from an “Active vs. Passive” paper I found in my files. “High potential returns always involve high potential risks. There are no low-risk/high-return investments. Investment risk comes in many forms but, to most investors, risk means the potential for losing investment capital and … [Read More...]

Fama & French – Value Risk Factor

  Sculpture on Main Sacred Way to Ming Tombs Fama-French’s value risk factor is at the heart of their paper, The Cross-Section of Expected Stock Returns.  This link connects you to an abstract of their paper.  It takes someone like William Bernstein to explain the research study and its importance.  Let me quote from "The Intelligent Asset … [Read More...]