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...]

ITA Portfolio Performance Data Sheet: 16 November 2012

While all portfolios declined in value over the past two weeks, the good news is that every portfolio, without exception, gained ground on both the ITA Index and VTSMX benchmarks.  Yes, you read correctly.  Every portfolio picked up basis points on both critical benchmarks. While none of these accounts are particularly set up as defensive portfolios, all reacted this way as none declined as … [Read More...]

300 Level

Pre-Examination of Maxwell Portfolio

Tomorrow is the examination date for the Maxwell Portfolio, one of the ITA Risk Reduction model candidates.  The asset allocation plan (Dashboard will be available tomorrow) for the Maxwell is a little different than it is for "mainstream" portfolios such as the Newton, Euclid, and Schrodinger.  The allocation plan is skewed toward small-cap value and emerging markets.  … [Read More...]

Simplified “Holy Grail” Portfolio: A 12-ETF Approach

12-ETF Portfolio Following up on yesterday's blog post, here is a simplified revision of the "Holy Grail" portfolio.  Any time one can reduce the number of holdings and improve the return and volatility projections, give the new portfolio high marks.  The following group of twelve (12) ETFs provides a higher Return/Risk ratio than the portfolio discussed yesterday.  … [Read More...]

200 Level

Keeping Portfolios Simple

Three Sample Portfolios Complicated portfolios discourage investors and that is why I am attempting to simplify the portfolios tracked here at ITA Wealth Management.  There are many examples of possible portfolios in the literature, particularly in books by Faber-Richardson, Swensen, and Bernstein.  Let's start with one of the simple portfolios laid out by David Swensen. While Swensen does not … [Read More...]

Portfolio Performance: 9 March 2012

Portfolio Performance:  The following table shows the performance data for eleven portfolios tracked here at ITA Wealth Management.  The ITA Index is a customized benchmark that one can develop within the TLH Spreadsheet.  The Sortino Ratio (SR) and Retirement Ratio (RR) are semi-variance calculations to determine portfolio risk or volatility. … [Read More...]

400 Level

“Delta Factor” Projections Merit Caution

This morning I ran into the following article, "Billionaires Dumping Stocks."  Heavy hitters, including Buffett, are shedding U.S. Equity stocks.  After reading this article I thought it prudent to run a "Delta Factor" analysis on a basic portfolio of 20 ETFs.  Platinum readers will find the QPP analysis below and the "Delta Factor" projections for 13 equity and seven bond ETFs. … [Read More...]

“Delta Factor” for Basic EFTs

One Platinum member ask to see what the current "Delta Factor" looks like.  It should come as no surprise that a market as high as this one will bring a lot of "Red" out in the "Delta Factor" table.  Below is the table for a number of basic ETFs used in a variety of portfolios.  The results take in the period of 3 February 2009 through 3 February 2012. … [Read More...]