100 Level

Active vs. Passive Decision

Active vs. Passive Management If the decision to handle your own investments is the answer to question #1 in this series, then going Passive is a no-brainer. The evidence for the passive approach to investing is so overwhelming anyone but Warren Buffett taking the active route needs to study statistics. Goldie and Murray write, "The Efficient Market Hypothesis asserts that no investor will … [Read More...]

Actively Managed Mutual Funds: Stay Away Despite This Article

In the July 2011 issue of the AAII Journal is an article titled, "The Truth About Top-Performing Mutual Fund Managers."  The title is an attention grabber as 'top-performing mutual fund managers' is an oxymoron.  Here are the article highlights. It is virtually certain that all top-performing managers will go through periods where they underperform. Most … [Read More...]

300 Level

Dividend Aristocrat Stocks

In contradiction to the many recent posts on the benefits of index and passive investing, I go against my own advice with the publication of this list of dividend aristocrat stocks.  This list might be of interest to Mosaic Investors who wish to add a few individual stocks to the core of their index oriented portfolio. The following information is not available for publication elsewhere. … [Read More...]

Explaining The Buy-Hold-Sell Recommendation Worksheet

Platinum members may be interested in how I go about using the Buy-Hold-Sell worksheet.  In the following blog entry I am using the upcoming Curie Portfolio as an example. … [Read More...]

200 Level

Portfolio Performance Data

Portfolio Performance Data Table Below is the weekly update for portfolio performance. If you are comparing SR and RR values from past weeks, there are some major shifts in the values as I corrected a bug in the semi-variance calculation. Some of those corrections took place last week, other changes were made this week. I still need to do some close "desk checking" as there are still … [Read More...]

Active vs. Passive Investing

ITA Wealth Management readers will recall the five decisions discussed in "The Investment Answer," a short book authored by Daniel Goldie and Gordon Murray, who died of brain cancer last month.  Those five fundamental decisions are:  1) Do-It Yourself Decision, 2) Asset Allocation Decision, 3) Diversification Decision, 4) Active versus Passive Decision, and 5) Rebalancing … [Read More...]

400 Level

Preparing the Maxwell for TAA Action

Platinum members interested in the quantitative approach to improving returns and reducing portfolio uncertainty for the Maxwell take note.  This morning shares of VTV and VOE were sold making room for VTI, VEU, VWO, VNQ, and RWX.  Check out the asset allocation plan below for this portfolio. … [Read More...]

Bullish Percent Indicators Are Not Calling For a Panic

Regardless of the "fiscal cliff" problems, the Bullish Percent Indicators for both the broad indexes and individual sectors are not showing any signs of a panic or sell-off.  There are even pockets of strength as Platinum members will see in the following slides. The following material is not available for publication elsewhere on the Internet. … [Read More...]