100 Level

Sample Portfolio

In response to a request from a Platinum member, I ran the following analysis of seventeen investments with the associated percentages.  For assumptions, I used the most recent three years of data and I projected the S&P 500 would return 7.0% over the next year.  As readers can see, the projected return is 7.2% or a little higher than we expect from the S&P 500.  The … [Read More...]

Pros and Cons of Index Investing

While scanning the Internet, I ran into this interesting post on the pros and cons of index investing. The writer covers many points we attempt to combat through our approach to portfolio construction and asset allocation. The author chides index investors for being too complacent.  We are anything but complacent and one way we avoid this problem is to accurately maintain and monitor … [Read More...]

300 Level

TLH Spreadsheets

Below are links to the seven spreadsheets available to Platinum members. … [Read More...]

Curie Portfolio Review: 4 April 2012

Another month rolled around for the Curie and here is the update.  One trivial bit of information is that one "shard" stock (Washington Mutual) was replaced with another (WMIH.PK).  I despise these fragments hanging around the portfolio.  This is not an issue when one is dealing with "mainstream" ETFs.  Moving past this nuisance we first take a look at the … [Read More...]

200 Level

QPP Analysis of Faber Ivy Ten Portfolio

Yesterday I analyzed the Faber-Richardson Five portfolio found in The Ivy Portfolio.  In this post, Platinum members will find the QPP analysis of the Faber-Rickardson Ten.  I used the same five-year time frame so readers can compare the two results.  Improvements and negatives come with this expanded portfolio. While the projected return moves up to 8.2%, we give up risk as the … [Read More...]

Portfolio Performance: 26 August 2011

The August 26th performance data was lost during the blog migration from Host A to Host B.  I'm re-posting the data table so this information is available. All portfolios tracked using the Captool software are now updated, something that was not complete last weekend. The August statements should be available this weekend so I will likely not post another performance table until I have … [Read More...]

400 Level

Modified Sortino Ratio and Retirement Ratio: A Review of Uncertainty Measurements

  While the Sortino ratio was an improvement versus the old methods for measuring portfolio performance against a standard, Retirement Ratio sets even a high performance bar.  The old Sortino Ratio looked like the following. S = (P - B)/DR where S = Sortino Ratio P = IRR for Portfolio B = IRR for Benchmark (we now use the customized ITA Index in our calculations) DR = Downside risk … [Read More...]

Understanding Feynman Portfolio Study Part 6-4

The following material is presented as an example to make sure I, and other readers, understand the significance and method of implementation for the Feynman Portfolio.  I am going to choose a different set of assets so I am not duplicating the example put forth in Part 6-4. Ranking of ETFs:  Here we have a list of possible securities to invest in a portfolio.  Using SHY as the "cutoff" we have … [Read More...]