100 Level

Pillars of Investing: William Bernstein Advice

  Photograph: The original Fitzcarraldo boat. William Bernstein's outstanding investment book, "The Four Pillars of Investing" defines four pillars of investing and these broad areas include the following. 1.  The Theory of Investing. 2.  The History of Investing. 3.  The Psychology of Investing. 4.  The Business of Investing. If I were asked to … [Read More...]

Five Investing Tips to Launch a Successful Retirement Program

Five money hints below will put you on the road to financial success. Follow "The Golden Rule of Investing." Save as much as you can as early as you can. Live below your means.  Learn self-discipline and stop spending on trivial material goods. Avoid Credit Card debt as it will kill your chances of success. Invest in index funds or index ETFs.  Many … [Read More...]

300 Level

Einstein Portfolio Review

Since the last update 33 days ago, shares of VWO, EMB, DBC, and GTU were sold and shares of VOE and VTI were purchased.  The Hoadley Optimizer recommended eliminating EMB, DBC, and GTU and we still need more shares of VOE in the portfolio. Einstein Dashboard:  Due to some action this past month, this Dashboard looks a little bloody.  I'll be readjusting the Strategic Asset Allocation plan to … [Read More...]

Kepler Portfolio Review: 9 April 2012

Two portfolios are scheduled for review this week and the Kepler is one of the two.  This portfolio has its roots going back to the mid-1990s when I advised the holder to populate it primarily with individual stocks.  In the early 2000s I began to advise a shift toward ETFs as iShares was opening up a wide array of options and I began to read about the advantages of index … [Read More...]

200 Level

Kepler Portfolio Review: 24 October 2011

Once more it is time to update the Kepler Portfolio.  Platinum members can see the Dashboard worksheet showing the asset allocation plan in the following screen shot. Note that both the Sortino and Retirement ratios are slightly negative.  The Internal Rate of Return (IRR) for the Kepler is trailing the VTSMX benchmark by 0.3%.  We should be able to make that up if and when the … [Read More...]

Portfolio Performance: 9 September 2011

The first full week in September was a mixed bag.  For starters, the market was down when measured by the VTSMX.  Several portfolios gained ground with respect to the ITA Index, our customized benchmark.  A few portfolio picked up fractions of a percentage point on the VTSMX.  A few also showed stronger Sortino ratios while others declined in value. Below is the performance … [Read More...]

400 Level

Bohr On April 30th: Example of New Spreadsheet

This is a sneak preview of the new optimizer-momentum spreadsheet David created today.  The data is what the Bohr portfolio looked like at the end of April.  Some trades occurred in May and those will show up when the Bohr is updated in a little less than a week. Efficient Frontier:  The efficient frontier looks the same as before.  Readers familiar with this graph will not the Bohr Portfolio … [Read More...]

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...]