100 Level

The Art and Science of Portfolio Construction

Basic investment principles require long-term portfolios exhibit the following characteristics. 1.  Equity orientation. Equity orientation includes high-expected return ETFs such as VTI, IWN, VTV, VOE, VOT, VBR, VBK, etc. 2.  Diversification over the entire world market. International exposure is possible through ETFs such as VEU, EFA, VWO, EPP, etc. This blog post is not … [Read More...]

Grandchildren: Live Below Your Means

  If you have been reading my Grandchildren suggestions, you will note thus far all come under the general category of discipline.  Learn to live a disciplined life and suggestion number three (3) is no different.  Live below your means.  Income must exceed outflow. Spend less than you earn and "spend" on your retirement fund. Defer immediate gratification. I recall … [Read More...]

300 Level

Best Portfolio Management Book

If you are looking for the best book on portfolio management, I don't think you will find it in print.  The best source I know of is right here at ITA Wealth Management.  Flexibility is the reason ITA is your best source.  1) Asset Allocation is emphasized.  2) The TLH Spreadsheet does it all for the interested investor.  The latest version even helps users identify the number of shares of … [Read More...]

Republic Services (RSG): Another Waste Hauler

The following analysis can be compared to the Waste Management analysis posted earlier this morning.  It comes as no surprise that sales grow at a slow rate.  It is the nature of the business.  After all, there are only so many houses and businesses requiring trash hauling. This material is not available for publication elsewhere on the Internet. … [Read More...]

200 Level

Smartest Low-Medium Risk Portfolio

With this low-medium risk portfolio we move up one notch in aggressiveness. This is still a very conservative portfolio with 60% committed to the bond/income asset class. Moving from 80% in bonds down to 60% brings about an increase in both projected return and projected uncertainty.  The Return/Uncertainty ratio is still a respectable 0.62. Platinum membership is available for a low $5.00 … [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...]

400 Level

Euclid ITA Risk Reduction Update

This was the weekend for the Euclid examination.  Here is a report of what happened.  First, take a look at the current Dashboard for this portfolio shown below.. … [Read More...]

Bohr On April 30th: Example of New Spreadsheet

This is a sneak preview of the new optimizer-momentum spreadsheet David created today.  The data is what the Bohr portfolio looked like at the end of April.  Some trades occurred in May and those will show up when the Bohr is updated in a little less than a week. Efficient Frontier:  The efficient frontier looks the same as before.  Readers familiar with this graph will not the Bohr Portfolio … [Read More...]