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Re: a close look at value and momentum

Again its a personal choice on what actions, if any, we should take. Personally, I have no problem with someone holding a (world) market index fund as their only stock holding, just as I don't have an issue with someone holding the iShares MSCI USA Momentum fund. I can see a rationale for either. T...
by Blue
Sun Jul 20, 2014 7:22 am
 
Forum: Investing - Theory, News & General
Topic: a close look at value and momentum
Replies: 253
Views: 15899

Re: If no access to DFA, Small Value worth it?

Blue Don't know how you calculated the expected returns but don't see how it can be correct as the Bridgeway fund is MUCH Smaller (and much deeper value metrics once look beyond BTm) One issue might be that your calculations look at value solely through BtM metric---which is what DFA fund does in s...
by Blue
Sat Jul 19, 2014 2:47 pm
 
Forum: Investing - Theory, News & General
Topic: If no access to DFA, Small Value worth it?
Replies: 18
Views: 2082

Re: If no access to DFA, Small Value worth it?

Thanks for all the replies here. The link from Alec (very helpful) and comments from Kevin M, Nisi, and Larry lead me to think that doing what I'm doing is just fine, esp for a satisficer like me. Maybe when I retire I'll decide to use a DFA advisor and get access to those funds. To know whether to...
by Blue
Sat Jul 19, 2014 1:37 pm
 
Forum: Investing - Theory, News & General
Topic: If no access to DFA, Small Value worth it?
Replies: 18
Views: 2082

Re: a close look at value and momentum

Larry - really curious what your thoughts are on this question and wanted to make sure it wasn't lost in this very informative and long thread. Larry, With a factor like momentum where there is a less convincing reason for it to persist, how long do reasonable investors stay the course in a hypothet...
by Blue
Fri Jul 18, 2014 11:53 am
 
Forum: Investing - Theory, News & General
Topic: a close look at value and momentum
Replies: 253
Views: 15899

Re: a close look at value and momentum

Larry, With a factor like momentum where there is a less convincing reason for it to persist, how long do reasonable investors stay the course in a hypothetical future period of prolonged momentum underperformance? In a period of prolonged momentum underperformance, what would influence you to eithe...
by Blue
Thu Jul 17, 2014 10:01 pm
 
Forum: Investing - Theory, News & General
Topic: a close look at value and momentum
Replies: 253
Views: 15899

Re: Financial Times Article on Vanguard.

This quote stood out to me, Indeed, Fidelity has had net outflows so far this year, of $3.5bn (to end June, according to Morningstar data), against Vanguard’s $64.8bn inflows. JPMorgan, with $14.7bn of new money, is next in line, while Dimensional Fund Advisors is third with $14.5bn. Vanguard's appr...
by Blue
Mon Jul 14, 2014 7:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Financial Times Article on Vanguard.
Replies: 11
Views: 2216

Re: A Look at Current P/E Ratios

The past 3, 5, and 10 year returns do not support SV being the next '99 tech stock fad. Comparing returns of Vanguard's SCV fund VISVX to Vanguard's TSM VTSMX according to M*; VISVX (SCV) vs VTSMX (TSM) 3 yr return: 16.1% vs 16.3% VISVX (SCV) vs VTSMX (TSM) 5 yr return: 22.9% vs 20.4% VISVX (SCV) vs...
by Blue
Sat Jul 12, 2014 9:40 am
 
Forum: Investing - Theory, News & General
Topic: A Look at Current P/E Ratios
Replies: 53
Views: 5752

Re: High end purses

My wife and many female acquaintances vouch for the coach outlet store near us. I splurged one year as a gift for a Louis bag from Saks, my wife returned it saying it was too much. We some time later did purchase one that she ultimately enjoyed at a "somewhat more reasonable price". One of...
by Blue
Fri Jul 11, 2014 11:26 pm
 
Forum: Personal Consumer Issues
Topic: High end purses
Replies: 119
Views: 9722

Re: "Being Done" Saving: White Coat Investor blog post

How does one individual contribute max to two separate 401k's in the same year?
by Blue
Fri Jun 27, 2014 7:12 pm
 
Forum: Investing - Theory, News & General
Topic: "Being Done" Saving: White Coat Investor blog post
Replies: 47
Views: 7508

Re: Why Asset Allocate/ Slice and Dice

Beyond the usual arguments, I thought Bill Bernstein made an intriguing point in his latest book about the additional volatility of small-value being worth an additional 60 bps to the periodic investor. Increased volatility allows the accumulator to buy more at deeper, more frequent lows.
by Blue
Tue Jun 24, 2014 10:33 pm
 
Forum: Investing - Theory, News & General
Topic: Why Asset Allocate/ Slice and Dice
Replies: 37
Views: 2010

Re: Bernstein: A Decade of Super-Low Returns

Reasonable to me, while recognizing he could be completely off. Naturally these are just midpoints of estimated ranges and even then the true values could fall outside of the ranges. That said, in November 2013 I dumped 90% of my small/value US tilt and bought international with all of it, especial...
by Blue
Tue Jun 10, 2014 6:15 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: A Decade of Super-Low Returns [1.4% for 60/40]
Replies: 207
Views: 17063

Re: Bernstein: A Decade of Super-Low Returns

Reasonable to me, while recognizing he could be completely off. Naturally these are just midpoints of estimated ranges and even then the true values could fall outside of the ranges. That said, in November 2013 I dumped 90% of my small/value US tilt and bought international with all of it, especial...
by Blue
Tue Jun 10, 2014 5:05 am
 
Forum: Investing - Theory, News & General
Topic: Bernstein: A Decade of Super-Low Returns [1.4% for 60/40]
Replies: 207
Views: 17063

Re: GMO's 7 year predictions

Ed,

Nice paper. I'm curious how much of the outperformance of "top 3 fund portfolio" vs "normal diversified portfolio" is due to size factor and emerging market tilts/risks rather than demonstrating any predictive ability?
by Blue
Mon Jun 09, 2014 9:15 pm
 
Forum: Investing - Theory, News & General
Topic: GMO's 7 year predictions
Replies: 6
Views: 1207

Re: Bernstein - Volatility Beneficial for Accumulators

Doesn't this only work if you assume mean reversion and fix the end point of the asset? If the asset has a unit root, then volatility only hurts; it never helps. Even with DCA. Interesting reading you linked on unit root. Bernstein makes the point in the book (pg 64) that statistically significant ...
by Blue
Mon Jun 09, 2014 7:49 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein - Volatility Beneficial for Accumulators
Replies: 7
Views: 1202

Bernstein - Volatility Beneficial for Accumulators

In Bernstein's recently published book Rational Expectations, the point is made that SV would have to underperform SP500 by 0.64% or more before it "loses" for the accumulator who is making periodic investments. The higher volatility of SV is said to allow more cheaper share purchases over...
by Blue
Sun Jun 08, 2014 7:26 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein - Volatility Beneficial for Accumulators
Replies: 7
Views: 1202

Re: Rational Expectations Kindle

A great read! Enjoyed studying my print copy over the past couple days.
by Blue
Sun Jun 08, 2014 1:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Rational Expectations Kindle
Replies: 10
Views: 1790

Re: Four Pillars Kindle Sale June 4/Rational Expectations

Ordered my copy of Rational Expectations today. Looking forward to diving into it!
by Blue
Tue Jun 03, 2014 7:40 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein's Four Pillars of Investing for $1.99 on June 4th!
Replies: 88
Views: 4628

Re: Prof Andrew Ang - Factor Investing Textbook Online

Amazon currently has the truncated kindle ebook of Ilmanen's Expected Returns for free FYI.

http://www.amazon.com/Expected-Returns- ... ed+returns
by Blue
Sun Jun 01, 2014 10:21 am
 
Forum: Investing - Theory, News & General
Topic: Prof Andrew Ang - Factor Investing Textbook Online
Replies: 9
Views: 1144

Re: Vanguard or DFA? "Vanguard, in a landslide..."

I was a DIY all vanguard portfolio for about 10 years. Then I changed to an all DFA portfolio through an advisor. I read these DFA v. VG comparisons and felt they were all a bit lacking. I think this is especially true for the taxable investor. There are differences that are hard to measure I think...
by Blue
Sat May 31, 2014 9:45 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard or DFA? "Vanguard, in a landslide..."
Replies: 54
Views: 4517

Re: How diversified is the Larry Portfolio

I like having some large growth stocks/SP500 in my portfolio because the fed cares about its performance. The SP500 has the luxury of the Fed put. Not sure the same is true for small value performance.
by Blue
Tue May 27, 2014 9:42 pm
 
Forum: Investing - Theory, News & General
Topic: How diversified is the Larry Portfolio
Replies: 40
Views: 3315

Re: Factoring TLH Into Decision Whether To Use An Advisor

I noticed that Vanguard now gives lot details and gain/loss per lot in the online account information - which I think makes tax loss harvesting much easier than it was before. On one account page, I can quickly see if there are any losses (in red) and the amount of loss that could be harvested. Bef...
by Blue
Wed May 21, 2014 9:22 pm
 
Forum: Investing - Theory, News & General
Topic: Factoring TLH Into Decision Whether To Use An Advisor
Replies: 34
Views: 1288

Re: Factoring TLH Into Decision Whether To Use An Advisor

I noticed that Vanguard now gives lot details and gain/loss per lot in the online account information - which I think makes tax loss harvesting much easier than it was before. On one account page, I can quickly see if there are any losses (in red) and the amount of loss that could be harvested. Befo...
by Blue
Wed May 21, 2014 9:01 pm
 
Forum: Investing - Theory, News & General
Topic: Factoring TLH Into Decision Whether To Use An Advisor
Replies: 34
Views: 1288

Re: DFA Core-- Why bother with bottom 1000 names?

Migration by Fama paper - it's a lottery effect. A few will have outsized gains as they migrate from small value to large growth.
by Blue
Tue May 20, 2014 9:59 pm
 
Forum: Investing - Theory, News & General
Topic: DFA Core-- Why bother with bottom 1000 names?
Replies: 19
Views: 1646

Re: The New Swedroe Book Has Arrived!

An excellent read as usual. Kudos Larry on yet another great book.
by Blue
Fri May 16, 2014 8:01 pm
 
Forum: Investing - Theory, News & General
Topic: The New Swedroe Book Has Arrived!
Replies: 22
Views: 3411

Re: What our company's 401k Advisor said about 1.5% Fees

We shopped this a few years back when our plan was between $2 and $3 MM with ~ 75 participants (now closer to $5MM). At that time, we found a local independent RIA to be fiduciary for 25 bps and a local TPA with their record keeper for about 25 bps and have an array of signal and admiral class share...
by Blue
Tue May 06, 2014 6:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 113
Views: 14850

Re: 401k Benchmarks

Fixed this for you, So we have a 2 employee (soon to be 4) employee plan with a safe harbor match, and it has nearly $1M in assets. Now we offer Vanguard Signal class (soon to be admiral) funds AT the VG expense ratio and cover all fees. Costs us about $2-3K/year at Online 401K. I don't view that as...
by Blue
Sat May 03, 2014 9:23 am
 
Forum: Personal Finance (Not Investing)
Topic: 401k Benchmarks
Replies: 27
Views: 5948

Re: 401k Benchmarks

There is nothing in ERISA that even arguably requires you to offer actively-managed funds in a retirement plan. That's salesman BS. There are other ways to reduce possible liability. Some plans, such as most 401(k) and profit sharing plans, can be set up to give participants control over the invest...
by Blue
Fri May 02, 2014 3:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401k Benchmarks
Replies: 27
Views: 5948

Re: 401k Benchmarks

The Dir of HR wants every conceivable service, including face-to-face financial counseling, fiduciary support, annual benchmarking, etc. She feels strongly that these services are required by the ERISA/EBSA regulations and since our employer is unwilling to pay for them, she wants us to foot the bi...
by Blue
Fri May 02, 2014 6:30 am
 
Forum: Personal Finance (Not Investing)
Topic: 401k Benchmarks
Replies: 27
Views: 5948

Re: Fama/French Factors: "A Come-to-Buffet Moment" (from M*)

The new model, which I wrote about while ago is known as the q factor model, using four factors of beta, size, investment and profitability. The investment factor is highly correlated with value factor and profitability highly correlated with MOM. Best wishes Larry Are these correlations stable (i....
by Blue
Tue Apr 29, 2014 9:55 pm
 
Forum: Investing - Theory, News & General
Topic: Fama/French Factors: "A Come-to-Buffet Moment" (from M*)
Replies: 74
Views: 4574

Re: Higher Risk, Higher Rewards than a Stock Index Fund

I'd recommend you read Swedroe's Alternative Investments book (http://www.amazon.com/Only-Guide-Altern ... 1576603105)

Collateralized Commodity Funds
Timber
Hedge funds/Fund of Funds

All have significant detractions that explain why many (most) of us aren't in them.
by Blue
Sat Apr 26, 2014 10:13 am
 
Forum: Investing - Theory, News & General
Topic: Higher Risk, Higher Rewards than a Stock Index Fund
Replies: 50
Views: 11965

Re: Advice for [Religious Investor]

Would mention zero coupon bonds to your friend.
by Blue
Fri Apr 25, 2014 11:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice [on Shariah compliant investment products]
Replies: 60
Views: 6486

Re: 401k Benchmarks

Interesting question, curious what answers you'll get.

My guess is 55 bps for your plan is cheaper than average for a plan of this size.
by Blue
Fri Apr 25, 2014 9:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401k Benchmarks
Replies: 27
Views: 5948

Re: Warren Buffett

With that kind of ability to generate alpha, you should start a hedge fund and charge 2 and 20.
by Blue
Mon Apr 21, 2014 11:32 pm
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett
Replies: 45
Views: 3464

Re: paydown strategy for mortgage

It sounds good, except you have not, today, saved that $200k+ per year x 20 years. You only have the plan to save that money. Things happen. Illness/disability, layoffs, structural economic change impacting job compensation or security, ill parents... stuff. Liquidity is worth nothing until you nee...
by Blue
Sun Apr 20, 2014 6:09 am
 
Forum: Personal Finance (Not Investing)
Topic: paydown strategy for mortgage
Replies: 40
Views: 3832

Re: Can I get some alpha? (DFA / Wealthfront)

I think very highly of DFA as it is now. I worry about what it could become when David Booth cashes out and there is a new owner who is looking for return on their investment/purchase *from* DFA investors. With a large taxable account, an investor has to consider comfort level with the investment bo...
by Blue
Sat Apr 12, 2014 3:02 pm
 
Forum: Investing - Theory, News & General
Topic: Can I get some alpha? (DFA / Wealthfront)
Replies: 58
Views: 3387

Re: negotiation for MD, contracts, RVUs etc

You might consider acquiring a copy of the MGMA Physician Compensation and Production survey for data points in terms of RVU production, specialty specific compensation/RVU etc. Your specialty society may also have valuable data points valuable in contract negotiations. For example, I have the 2009 ...
by Blue
Fri Apr 11, 2014 5:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: negotiation for MD, contracts, RVUs etc
Replies: 11
Views: 1043

Re: Hypothetically living off investment dividends?

What are the communities feelings on Blackrock Muni Funds? https://www2.blackrock.com/us/individual-investors/products-performance/closed-end-funds MHN - BlackRock MuniYield New York Quality Fund, Inc. BTT - Municipal Target Term Trust BHYRX - BlackRock High Yield Bond Fund BYM - BlackRock Municipa...
by Blue
Tue Mar 25, 2014 7:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Hypothetically living off investment dividends?
Replies: 34
Views: 3217

Leveraged Muni Funds - Potential Downsides?

What are the potential downsides to leveraged muni funds with yields twice Vanguards Muni funds? How does the math work when interest rates rise? When do yield payments suffer? Greatness asks the below in another thread. I was curious as well and thought the question deserving of its own thread. Wha...
by Blue
Tue Mar 25, 2014 7:23 pm
 
Forum: Investing - Theory, News & General
Topic: Leveraged Muni Funds - Potential Downsides?
Replies: 1
Views: 234

Re: Hypothetically living off investment dividends?

I know they go out long. As for the closed ended Blackrock ones, I am not entirely sure. They've been going strong, some for over 20 years. Blackrock isn't really a fly by night company. The highest yielding munis I see by Vanguard are in the low 3's for comparison. It looks like your plan is count...
by Blue
Tue Mar 25, 2014 5:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Hypothetically living off investment dividends?
Replies: 34
Views: 3217

Re: Hypothetically living off investment dividends?

if current muni and stock yields are around 2% and you can live off them, then you are implying a 2% withdrawal rate. That has always been sustainable, including accounting for inflation, regardless of how you mentally account for that income. Even 3% has always been sustainable. 4% is sustainable ...
by Blue
Tue Mar 25, 2014 4:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Hypothetically living off investment dividends?
Replies: 34
Views: 3217

Re: The Estate lawyer cost us big

Our local law school had to change the name of its atrium after a prominent and powerful local attorney was convicted of misappropriating client funds over many years. It sounds like his behavior was more egregious than what you believe to be the case in your situation, and took some number of years...
by Blue
Tue Feb 25, 2014 6:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: The Estate lawyer cost us big
Replies: 109
Views: 9180

Re: The Estate lawyer cost us big

Placing myself in your situation, I'd be inclined to ask for clarification of the bill with the comment that it was much higher than you anticipated. Perhaps the firm will retroactively apply "a family discount"? I'd also be inclined to spend a few hundred dollars talking to a unaffiliated...
by Blue
Fri Feb 21, 2014 2:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: The Estate lawyer cost us big
Replies: 109
Views: 9180

Re: Buying a 'loaded' vs stripped down vehicle

We "load up" the safety features when purchasing. Adaptive cruise often comes with precollision systems. Because kinetic energy is mass x square of velocity, a small reduction in collision speed has the potential to be life altering. Not sure why more don't insist on some sort of precollis...
by Blue
Wed Feb 19, 2014 9:48 pm
 
Forum: Personal Consumer Issues
Topic: Buying a 'loaded' vs stripped down vehicle
Replies: 52
Views: 3592

Re: What to do when a parent's money runs out?

Those saying send the money without qualification have never met a mother like my mother-in-law.

There are some instances where sending the money only enables bad behaviors.
by Blue
Sat Feb 15, 2014 10:57 am
 
Forum: Personal Finance (Not Investing)
Topic: What to do when a parent's money runs out?
Replies: 135
Views: 15558

Re: My kids want a treehouse -

I was wondering if the OP was going to build a tree-house that had easy (meaning a ladder) access, or you had to climb up to reach it. There has been quite a bit of internal discussion between the kids on this issue, a volleying back and forth the pros and cons of each option. As of now, there is a...
by Blue
Mon Feb 10, 2014 9:15 pm
 
Forum: Personal Consumer Issues
Topic: My kids want a treehouse -
Replies: 36
Views: 2731

Re: My kids want a treehouse -

Great comments - really have enjoyed reading them! Liability coverage in place. Books on order, Tree Houses You Can Actually Build: A Weekend Project Book and Home Tree Home: Principles of Treehouse Construction and Other Tall Tales Found a great treehouse supply site, http://www.treehousesupplies.c...
by Blue
Mon Feb 10, 2014 9:11 pm
 
Forum: Personal Consumer Issues
Topic: My kids want a treehouse -
Replies: 36
Views: 2731

Re: My kids want a treehouse -

Thank you for the great comments thus far - appreciate each one, hope for additional thoughts/tips/warnings and really value the breadth of this boards experience. Both http://www.treetopbuilders.net/treehouse-safety-kids/ and http://www.nelsontreehouseandsupply.com/ look amazing including weekend c...
by Blue
Sun Feb 09, 2014 1:50 pm
 
Forum: Personal Consumer Issues
Topic: My kids want a treehouse -
Replies: 36
Views: 2731

My kids want a treehouse -

What kids don't right? We have the yard with trees and are willing to put some resources/energy into the project.

Any experience or recommendations building or hiring built a treehouse? Tips/Warnings?

Thanks in advance.
by Blue
Sun Feb 09, 2014 10:47 am
 
Forum: Personal Consumer Issues
Topic: My kids want a treehouse -
Replies: 36
Views: 2731

Re: 529 questions

Two considerations, I) Will you miss out on any future tax years benefits by not making future contributions? We plan to make future annual contributions for the tax benefits and so have avoided "fully funding" at outset. II) A conservative asset allocation's expected returns may (probably...
by Blue
Sat Feb 01, 2014 1:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: 529 questions
Replies: 31
Views: 1901

Re: Warren Buffett Books - for kids

I wonder if Barnes and noble find a book by lexile range/grade would be helpful?

http://www.barnesandnoble.com/reading-l ... search.asp
by Blue
Thu Jan 30, 2014 9:27 am
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett Books - for kids
Replies: 12
Views: 1095
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