100 Level

Stock Picking: Why It Is So Difficult To Be Successful

Shortly before the editor to the old blog collapsed, I posted this entry and I want readers to be sure to see it. Are you tracking the performance of your portfolio and measuring the Internal Rate of Return (IRR) with respect to the IRR of an appropriate benchmark? If not, why not? Investors not engaged in this level of measurement will likely find this discussion of little use. Shall we say, … [Read More...]

The Nine Rules of Investing from “Millionaire Teacher”

Another new book worth reading is Andrew Hallam's Millionaire Teacher.  The book is built around the following nine rules of investing.  I add my brief summary of each chapter. Rule 1:  Spend Like You Want to Grow Rich This chapter provides a glimpse into how Hallam turned down the screws of living and saved and saved and saved.  His personal experiences are classic … [Read More...]

300 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...]

Einstein Portfolio Review: 22 August 2011

This business week begins with an update of the Einstein Portfolio, an excellent example for the small investor.  This morning I picked up another 30 shares of RWX in an effort to bring International REITs back into balance.  Back on 8/8 25 shares of VEU were added to the Developed International Markets asset class.  Limit orders are in place to pull that class back up to … [Read More...]

200 Level

Active vs. Passive Investing: Part 12

This is the last in a series of 12 blog posts where I rebut the Active vs. Passive Investing paper.  Section Twelve (12) of the paper contains is a very clever argument.  The conclusion is that retail investors outperform the market.  However, arguments are not the same as evidence.  Nevertheless, here is the argument. If you accept the measurement of passive returns to … [Read More...]

A Lesson from Gauss

Carl Gauss is considered by some as the most brilliant mathematician who ever lived.  He is sometimes called called the "Prince of Mathematicians."  I even named one of my computers after him.  One of his contributions is the Gaussian Distribution where real valued random variables tend to cluster around a single mean variable.  Does that sound like prices dancing … [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...]

“Delta Factor” Projections For Sector ETFs

While I do not build portfolios around sectors of the stock market, it is important to review sectors ETFs as it provides another view of market conditions.  We examine the Bullish Percent Index information as shown in this article, to see where the market as been and is it over bought or under sold.  When the BPI values are above the 70% line, as most are today, we argue the market is too high to … [Read More...]