100 Level

The Nine Rules of Investing from “Millionaire Teacher”

Another new book worth reading is Andrew Hallam's Millionaire Teacher.  The book is built around the following nine rules of investing.  I add my brief summary of each chapter. Rule 1:  Spend Like You Want to Grow Rich This chapter provides a glimpse into how Hallam turned down the screws of living and saved and saved and saved.  His personal experiences are classic … [Read More...]

Solving Investment Problem #2: I don’t know where to begin.

For readers or prospective investors who don't know where to begin, one place to start is to click on the Category to the right titled, Beginning Investors.  My second recommendation is to read two short books.  The two easiest investment books that will put you on the right path are: "The Investment Answer" by Daniel Goldie and Gordan Murray and "The Elements of … [Read More...]

300 Level

Kenilworth Portfolio Update: 17 October 2011

Although the regular review for the Kenilworth is a few weeks away, purchases and sales this month are reasons for updating the portfolio today.  Readers will note some changes in the Strategic Asset Allocation plan.  For example, shares of VO and VB were sold out of the blend asset classes and those assets were shifted to VTI, the large-cap blend ETF.  VO and VB are highly … [Read More...]

AAII ETF Portfolio Analysis

In the November 2011 issue of the AAII Journal is a Model ETF Portfolio.  I've been a member of the American Association of Individual Investors (AAII) since the mid-1970s and it is a great organization.  In each publication, I generally find one or two articles of interest.  Anytime I see a sample portfolio I like to run an analysis to see what the QPP is telling me.  … [Read More...]

200 Level

Which Family of ETFs Should I Use?

Question sixteen (16) in this blog entry asked the following question.  "If one prefers Vanguard ETFs, but one's investment service company does not offer commission-free Vanguard ETFs, then is the best option to choose equivalent commission free ETFs that are offered (iShares)?"  Yes, is my answer, and others can chime in with your ideas. Vanguard, Barclay Global … [Read More...]

Playing Defense With The “Holy Grail” Portfolio

While there is no such thing as a "Holy Grail" portfolio, humor me for a few minutes and think of this simple seven ETF portfolio as a sound basic portfolio. The purpose of this post is to test how one might play portfolio defense and when is such a move necessary.  First, we take a look at the current QPP analysis for this seven ETF portfolio. Platinum membership is available for … [Read More...]

400 Level

Exponential Moving Average Review

The term Exponential Moving Average (EMA) showed up in a number of recent posts.  Those unfamiliar with this term would benefit with a review.  In searching the blog, I thought I defined EMA, but that post was likely lost when I move the blog to a new host provider.  Here is how EMA is calculated. One first calculates a Smoothing Constant based on the number of days one will be using for the … [Read More...]

15-Stock Diversification Myth

Diversification Myth Debunked   How many stocks does it take to eliminate portfolio risk?  The number 12 to 15 often crops up.  If that is too few, then maybe 20 to 30 will do.  This number has also come under fire, particularly in a world economy where U.S. companies no longer make up the majority of available companies and our economy is shrinking as a percentage of the … [Read More...]