100 Level

Active vs. Passive Management

Active Investing:  Given that almost all money management is active, alpha is obviously added to the portfolio though this style of investing.  Not so quick.  While one would expect this assumption to be true, otherwise why is active management so popular. Active investors purchase securities they deem to be undervalued while the investor on the other side of the trade concludes … [Read More...]

William J. Bernstein Quotes

If you enjoy reading quotes as much as I do, check these out. I thought pulling out a few choice quotes from William Bernstein’s latest book, “The Investor’s Manifesto” would be of interest to readers.  For your reading pleasure on a Saturday afternoon. “For the past 200 years things have always worked out well in the long run for the owners of U.S. stocks. … [Read More...]

300 Level

Einstein Portfolio Review

One of the benefits of looking at the Einstein Portfolio is to see what a portfolio looks like when nearly all the asset classes are in balance.  Using a 20% threshold or target boundaries, all but international bonds and two blend asset classes are within the 20% limits.  I'm still debating whether or not I want to continue to hold mid-cap blend (VO) and small-cap blend (VB) as both … [Read More...]

Smartest High Risk Portfolio

This is the last article in this series of QPP analysis of Solin's "supersmart" portfolios.  Of all the portfolios, this one is perhaps the weakest.  Read on to understand why. … [Read More...]

200 Level

ITA Experimental Portfolio

The following portfolio is in the experimental stages of investigation so approach it with caution.  I have not checked out costs and expenses for every ETF included in this QPP analysis.  The portfolio includes seven unfamiliar stocks.  I will explain where they come from and the screens used to uncover them. Platinum membership is available for $5.00 per month.  Join ITA and … [Read More...]

Cut the Fees

Fees matter!  Read this blog post by Geoff Considine and you will see why I am a nut when it comes to reducing fees.  They make a huge difference over a lifetime of investing.  When I began this investment journey many years ago, it was not unusual for mutual funds to charge an 8.5% load fee on all new money going into the fund.  What a scam. Usury is a better term.  Even … [Read More...]

400 Level

Strong Market And The Risk Reduction Model

The current strong market is serving investors well if they made no changes in their portfolios.  Those five portfolios where I am using the ITA Risk Reduction model will suffer as a result of the robust domestic and recovery of international market.  Nobody claimed the ITARR model works all the time.  It is designed to prevent major losses during bear markets and that is not what … [Read More...]

How Important Is Portfolio Risk or Portfolio Uncertainty?

The Importance of Managing Portfolio Uncertainty If 2008 taught us one lesson it is that portfolio risk is just as important as portfolio return. In the following analysis I want to examine some of the risk details of the Passive Portfolio (PP) or the Schrodinger Portfolio. At the end of 2007, this portfolio had a value of $234,160 and by the end of 2008, one year later, the value dropped to … [Read More...]