100 Level

Eschew Active Management

    Richard Ferri writes in his book, "The Power of Passive Investing," - "Efficient investing is different from efficient markets."  How true.  Following recommendations of Ferri, Bernstein, Swedroe, and other index advocates, we seek to advise investors to set up and manage well-diversified portfolios in order to increase the probability of … [Read More...]

Quotes from Charles Ellis

"It's not how good you are that counts, but how good you are compared with your competitors." "The really impressive characteristic of investment returns is that the variation in year-to-year rates of return on common stocks dwarfs the average annual rate of return on stocks." "Investment policy is the foundation upon which portfolios should be constructed and … [Read More...]

300 Level

Einstein Portfolio Update: 25 May 2012

Are you looking for a non-ITA Risk Reduction model portfolio?  The Einstein is one of those portfolios and as Platinum members can see from the Dashboard below, all 17 asset classes are in balance with exception of cash.  This particular asset allocation plan spans all asset classes we use to construct portfolios and there is a tilt toward value and smaller cap assets. Platinum … [Read More...]

Dividend Aristocrat Stocks – 8 July 2011

Below is the screen I use to create a list of "Dividend Aristocrat" stocks using data as of July 8, 2011. … [Read More...]

200 Level

Update of Schrodinger Portfolio: 20 January 2012

The Schrodinger Portfolio was scheduled for an update yesterday, but I got caught up in activities surrounding the Madison Portfolio, one of the ITA Risk Reduction portfolios.  Long-time readers know the Schrodinger as the most passively operated portfolio I track.  It is rare we make a trade in this eleven-year portfolio.  Platinum readers can see the asset allocation plan in the … [Read More...]

Retirement Planning: Closer Than You Think

Too many young folks think retirement is so far in the future it does not merit current attention.  From experience I can tell you that retirement arrives sooner than you realize, particularly if you are not properly prepared.  Once more, check out The Golden Rule of Investing.  If I want to scare myself into saving more I reread the following William Bernstein quote. "Each dollar you do not … [Read More...]

400 Level

“Delta Factor” Projections for Bond ETFs

"Delta Factor" projections for bond ETFs are grim for the next few months.  All but BWX are negative in the Delta column.  SHV only rounds to zero as it is also negative.  While a number of bonds are showing a "Delta Factor" of Hold, the bias or tilt is definitely down as shown by the Delta column.  The general prediction is to hold these ETFs with great … [Read More...]

Gauss Portfolio Review: Efficient Frontier, Rankings, and Decisions

Thirty-three days rolled by and it is once more time to update the Gauss Portfolio.  Remember, this is one of the risk reduction model portfolios. Efficient Frontier:  Recent buy and sell adjustments moved the current portfolio (diamond dot) much closer to the optimized portfolio (red dot on EF curve).  In fact they are almost one and the same.  Platinum members can do a search of Gauss to see … [Read More...]