100 Level

Buffett or Steadman

For every Warren Buffet there are a hundred Charlie Steadman's.  While nearly every investor has heard of Buffett, few remember Charlie Steadman. Is there a reason for this short memory? “Until he died at age 83 in 1997, Charlie Steadman burned through investors’ assets at a rate unseen in the fund business since the Great Depression–and, we hope, never to be seen … [Read More...]

Which ETFs To Use When Constructing A New Portfolio

Which ETFs do I recommend for different asset classes when putting together that first portfolio?  The first move is to decide which asset classes to use.  Twenty-five months ago I posted this Asset Allocation blog and little has changed over that time.  One error in the table is the position of VEA.  That ETF should be included in the Developed International Equities box rather than the Emerging … [Read More...]

300 Level

Passive vs. Active Investment Strategy

Using Morningstar and Yahoo-Finance to compare stocks and ETF performance.* Here is an exercise that will prove informative to investors who construct portfolios using stocks. Follow these instructions. … [Read More...]

Walking Your Way To Independent Portfolio Management

Portfolio management is not equivalent building a house or overhauling a car engine.  It is not that hard, so don't throw up your arms and say you cannot do it yourself.  With Internet access, it is much easier than it was ten to fifteen years ago.  Here are steps to setting up your own portfolio, managing the assets, and monitoring it on a yearly basis. 1) Open up an account … [Read More...]

200 Level

Index Funds Advisors Asset Class Comparison: Examining The Big Return vs. Risk Picture

Index Funds Advisors Asset Class Comparison:  As promised yesterday, the third video talk from Index Funds Advisors is located at this URL.  Mark Hebner provides the large picture of the relationship between return and risk.  If you missed the first two presentations, go back to this blog entry to pick them up.  While you are on the IFA web site, I recommend each reader take … [Read More...]

Swensen Portfolio Plus Dividend ETF VIG

As suggested by one reader, I removed the individual stocks from the Swensen-Six Portfolio and added VIG, a dividend oriented ETF.  Below is the Quantext Portfolio Planner (QPP) analysis, correlation matrix, and "Delta Factor" projections when using five years of historical data.  One big advantage of using VIG instead of several individual stocks is one of simplicity.  … [Read More...]

400 Level

Sample Portfolio For Fidelity Clients

The following portfolio represents a sample of commission free ETFs available through Fidelity.  The efficient frontier shows an asset allocation plan that is so close to an optimized portfolio that the diamond and red dots are no different on the graph. Efficient Frontier:  The indicator for the optimum portfolio lies behind the diamond dot.  The Return/Risk ratio is just a bit over 0.5, quite … [Read More...]

Reference Portfolio Analyzed

Using an array of ETFs, primarily commission free with TDAmeritrade, I ran a Momentum-Optimization Model (MOM) analysis for the purpose of showing new and experienced investors how the MOM can be used  to manage a portfolio.  Not everyone will be interested in this model as it does require more monitoring than the buy and hold approach. Consider MOM to be one level up in sophistication as … [Read More...]