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Re: Is There An Actively Managed Fund Cheaper Than An Index

Berkshire Hathaway is not a mutual fund of any sort. +1 Paul If you think Berkshire doesn't compare to a mutual fund, in my opinion, you are sadly mistaken. Here's a list of companies that make up Berkshire: Acme Brick Company Applied Underwriters Ben Bridge Jeweler Benjamin Moore Co Berkshire Hath...
by SpaceCommander
Tue Dec 09, 2014 9:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is There An Actively Managed Fund Cheaper Than An Index Fund
Replies: 25
Views: 2249

Re: Is There An Actively Managed Fund Cheaper Than An Index

Berkshire Hathaway is essentially a fund. It has an expense ratio of zero. (And a pretty good fund manager too, I hear).

Index funds cannot beat zero. BRK.B

:happy
by SpaceCommander
Tue Dec 09, 2014 12:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is There An Actively Managed Fund Cheaper Than An Index Fund
Replies: 25
Views: 2249

Re: Investing Magazines

If you want specific investment advice, a magazine probably isn't what you're looking for. Perhaps a newsletter will fit the bill, but outsized returns by following advice from investment newsletters probably isn't going to happen. On the other hand, personal finance magazines often have useful info...
by SpaceCommander
Sun Dec 07, 2014 10:06 am
 
Forum: Investing - Theory, News & General
Topic: Investing Magazines
Replies: 29
Views: 2251

Re: Why is Dave Ramsey wrong?

I'm going to go out on a limb here and say I'm not completely opposed to a financial advisor receiving a commission. I don't think they're all ripoff artists. Certainly for someone willing to learn about finances and how to manage their own investments, financial salespeople are completely unnecessa...
by SpaceCommander
Fri Dec 05, 2014 11:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Why is Dave Ramsey wrong?
Replies: 73
Views: 9991

Re: Tools for indexers

I like Eric Haas' list of best funds/etfs for each asset class. Bookmarked here: http://altruistfa.com/dfavanguard.htm
by SpaceCommander
Mon Dec 01, 2014 7:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tools for indexers
Replies: 1
Views: 575

Re: A rational allocation in individual stocks?

...For what it's worth: everything bpp says here flies in the face of value investing principles.... Well, this is not a "value investing" forum. Reread the Bogleheads' investment philosophy and refresh your memory on what it has to say about value investing. Hint: it says nothing about v...
by SpaceCommander
Mon Dec 01, 2014 8:27 am
 
Forum: Investing - Theory, News & General
Topic: A rational allocation in individual stocks?
Replies: 20
Views: 1306

Re: Can active funds reliably beat the index? Actually, Yes

If I were managing a mutual fund, I wouldn't want to own shares of my own fund. Here's the reason: the mutual fund is a deeply flawed medium. If I were a fund manager, I'd rather manage my own money privately, than pool it with 1000's of other retail investors. With my own small portfolio, I could i...
by SpaceCommander
Sun Nov 30, 2014 9:18 pm
 
Forum: Investing - Theory, News & General
Topic: Can active funds reliably beat the index? Actually, Yes.
Replies: 41
Views: 6793

Re: A rational allocation in individual stocks?

You need an absolute minimum of five stocks diversified across five industries but the optimal size of an individual stock portfolio is 15-25 names. 30 at the very most. I will disagree here, and say the optimal size is as many names as possible. 30 at the very least. More is better. The reason bei...
by SpaceCommander
Sun Nov 30, 2014 8:31 pm
 
Forum: Investing - Theory, News & General
Topic: A rational allocation in individual stocks?
Replies: 20
Views: 1306

Re: I'm getting Slaughtered in stocks

I too would be interested in learning which companies made up the investment. Even more specifically: why were they chosen? And what kind of due diligence was performed on them? What money management rules were in place? Did he have an exit strategy beforehand, or was this merely a "buy & h...
by SpaceCommander
Sat Nov 29, 2014 5:29 pm
 
Forum: Investing - Theory, News & General
Topic: I'm getting Slaughtered in stocks
Replies: 43
Views: 5865

Re: Oil / Energy ETFs

Very rarely are we able to pick up big oil at this kind of valuation. As the sector has taken its hits recently, I'm happy to add some leading majors to my income porfolios at this time. As a matter of fact, I'm selling some overvalued utilities on Monday and rolling those proceeds into some underva...
by SpaceCommander
Sat Nov 29, 2014 5:10 pm
 
Forum: Investing - Theory, News & General
Topic: Oil / Energy ETFs
Replies: 54
Views: 3721

Re: Apple Stock - Seems great, right?

Completely insufficient amount of information necessary to make such a decision. Of course. Apparently you missed the point: It is possible to select individual stocks with better fundamentals and valuation than the broad market. I'm not saying everyone should do so. I'm simply pointing out that it...
by SpaceCommander
Fri Nov 21, 2014 5:18 pm
 
Forum: Investing - Theory, News & General
Topic: Apple Stock - Seems great, right?
Replies: 116
Views: 11104

Re: Apple Stock - Seems great, right?

Just for fun, I sketched out a potential investment on the back of a napkin. It came down to these two options: Company A ROE: 21.22 ROA: 8.19 Price to Forward Earnings: 17.6 Company B ROE: 32.60 ROA: 18:08 Price to Foward Earnings: 14.8 Which would you rather own? By the way: Company A is SPY, Comp...
by SpaceCommander
Thu Nov 20, 2014 7:42 pm
 
Forum: Investing - Theory, News & General
Topic: Apple Stock - Seems great, right?
Replies: 116
Views: 11104

Re: What individual stock?

Right now you can buy IBM at a lower cost than Buffet paid when he took a large position not too long ago. I like those odds.
by SpaceCommander
Fri Nov 07, 2014 11:44 am
 
Forum: Investing - Theory, News & General
Topic: What individual stock?
Replies: 20
Views: 1433

Re: Good book for 13 year old?

Before teaching him about investing, I'd start with personal finance in general and specifically focus on debt free living. My vote is for something like Financial Peace Jr. by Dave Ramsey. http://www.amazon.com/Financial-Peace-Junior-Dave-Ramsey/dp/1937077055/ref=pd_sim_b_1?ie=UTF8&refRID=0RA3G...
by SpaceCommander
Thu Nov 06, 2014 3:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Good book for 13 year old?
Replies: 14
Views: 1812

Re: New Tony Robbins Book on Financial Freedom

I thought Tony Robbins was/is in prison. You're probably thinking of another famous self-help guru: James Arthur Ray. He was sentenced to prison after people died in his sweatlodge fiasco a few years back. That wasn't Tony Robbins. http://usatoday30.usatoday.com/news/nation/story/2011-11-18/sweat-l...
by SpaceCommander
Mon Nov 03, 2014 6:16 pm
 
Forum: Investing - Theory, News & General
Topic: New Tony Robbins Book on Financial Freedom
Replies: 85
Views: 16521

Re: "Should You Be a Dividend Stock Investor?"

Ma Bell doesn't care so you shouldn't either. Good illustration of a behavioral finance "error" that lots and lots of people make. The behavioral aspect is indeed front and center here. When the investor's financial needs are covered by the portfolio's income, selling is unnecessary. When...
by SpaceCommander
Sat Nov 01, 2014 7:34 pm
 
Forum: Investing - Theory, News & General
Topic: "Should You Be a Dividend Stock Investor?"
Replies: 33
Views: 3386

Re: Do stocks have an intrinsic fundamental value?

So what I hear Larry saying is, "Yes, stocks have intrinsic fundamental value, but you can't know what it is." While valuation estimates are just that: estimates, Buffet seems to think that under certain circumstances some valuation estimates are more reliable than others. If there's too ...
by SpaceCommander
Sun Oct 26, 2014 7:39 pm
 
Forum: Investing - Theory, News & General
Topic: Do stocks have an intrinsic fundamental value?
Replies: 31
Views: 2341

Re: Do stocks have an intrinsic fundamental value?

So what I hear Larry saying is, "Yes, stocks have intrinsic fundamental value, but you can't know what it is." While valuation estimates are just that: estimates, Buffet seems to think that under certain circumstances some valuation estimates are more reliable than others. If there's too m...
by SpaceCommander
Sun Oct 26, 2014 5:44 pm
 
Forum: Investing - Theory, News & General
Topic: Do stocks have an intrinsic fundamental value?
Replies: 31
Views: 2341

Re: IBM: Stock Buybacks Gone Wrong?

Since we've been talking Buffet: here's how he would assess the propriety of stock buybacks. "We test the wisdom of retaining earnings by assessing whether retention, over time, delivers shareholders at least $1 of market value for each $1 retained... The five year test should be: (1) during th...
by SpaceCommander
Thu Oct 23, 2014 7:20 pm
 
Forum: Investing - Theory, News & General
Topic: IBM: Stock Buybacks Gone Wrong?
Replies: 66
Views: 4964

Re: Risk in a high dividend stock portfolio

FWIW, I think that this approach is way too risky. Investing in a company (or 50 companies) just because they have high dividends is a recipe for regret. If you're going to buy a "dividend stock", it's usually a much better bet to purchase a blue chip with solid fundamentals. And diversify...
by SpaceCommander
Thu Oct 23, 2014 3:30 pm
 
Forum: Investing - Theory, News & General
Topic: Risk in a high dividend stock portfolio
Replies: 19
Views: 2638

Re: GT Advanced Technology Files for Chapter 11

Anyone who was closely following the company would have noticed that insiders had been dumping the stock hand over fist since July. It's usually not a good sign when top executives and directors are exercising their options and immediately liquidating 100%. A look at insider selling is breathtaking...
by SpaceCommander
Thu Oct 23, 2014 3:05 pm
 
Forum: Investing - Theory, News & General
Topic: GT Advanced Technology Files for Chapter 11
Replies: 9
Views: 1569

Re: Is investing in real estate worth it?

But, real estate does add an entirely different type of asset and income stream to the mix. That's one of the main reasons I like it, I consider it a form of meta-diversification. Oh and real estate is fantastic at throwing off reliable cash flows, much better than a financial portfolio in that res...
by SpaceCommander
Thu Oct 23, 2014 2:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is investing in real estate worth it?
Replies: 28
Views: 2630

Re: Is investing in real estate worth it?

But, real estate does add an entirely different type of asset and income stream to the mix. That's one of the main reasons I like it, I consider it a form of meta-diversification. Oh and real estate is fantastic at throwing off reliable cash flows, much better than a financial portfolio in that res...
by SpaceCommander
Wed Oct 22, 2014 7:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is investing in real estate worth it?
Replies: 28
Views: 2630

Re: Is investing in real estate worth it?

I've invested in real estate and made a lot of money. A couple observations: 1. It's really is a business and needs to be treated as such. Are you ready for a sideline business? 2. It can be a huge hassle and major time suck in many ways depending on the kind of real estate invested in. Are you up f...
by SpaceCommander
Wed Oct 22, 2014 5:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is investing in real estate worth it?
Replies: 28
Views: 2630

Re: GT Advanced Technology Files for Chapter 11

Anyone who was closely following the company would have noticed that insiders had been dumping the stock hand over fist since July. It's usually not a good sign when top executives and directors are exercising their options and immediately liquidating 100%. A look at insider selling is breathtaking....
by SpaceCommander
Tue Oct 21, 2014 11:36 am
 
Forum: Investing - Theory, News & General
Topic: GT Advanced Technology Files for Chapter 11
Replies: 9
Views: 1569

Re: Are Windows Phones easy to use?

Yes. Windows phones are easy to use. My wife is a techno-phobe, and she loves her Windows phone. She uses it for the same thing. The only downside IMO, is that it doesn't have as many apps as IOS or Android, but if you're not into all the bells and whistles, it's got all the mainstream stuff that pe...
by SpaceCommander
Sun Oct 12, 2014 4:52 pm
 
Forum: Personal Consumer Issues
Topic: Are Windows Phones easy to use?
Replies: 8
Views: 882

Re: Buying a bounce house for personal use?

When my kids were small, I bought a brand new unit. I didn't get the cheap, non-commercial one. I bought a gigantic behemoth circus sized one that took 2 grown men and a truck to haul around and setup. It cost me somewhere around $5K. I ended up renting it out myself to others and recouped a chunk o...
by SpaceCommander
Wed Sep 17, 2014 11:18 am
 
Forum: Personal Consumer Issues
Topic: Buying a bounce house for personal use?
Replies: 25
Views: 1850

Re: What are you up YTD?

I honestly have no idea, and frankly, I doubt that it matters in the least. I suppose I could find out if I bothered to check all my statements as of 31 Dec, and compare to now, adjusting for additions/withdrawals. But what's the point? The only thing worth measuring, in my opinion, is my asset allo...
by SpaceCommander
Sat Sep 13, 2014 5:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: What are you up YTD?
Replies: 213
Views: 18790

Re: ETF Proliferation leads to market inefficiencies?

So, it's not a matter of "if" but, "when" passive investing triumphs in the marketplace of ideas, it won't disrupt the markets because... ...because it takes a very small number of active investors to quickly arbitrage away any inefficiencies in the market. Alright. I can buy tha...
by SpaceCommander
Tue Sep 09, 2014 10:14 am
 
Forum: Investing - Theory, News & General
Topic: ETF Proliferation leads to market inefficiencies?
Replies: 22
Views: 1426

Re: ETF Proliferation leads to market inefficiencies?

Agreed. The data in the article is sorely lacking. I commented merely because he throws out an idea that made me revisit some of my assumptions. So I take it that the consensus here is the idea has no merit because: 1. The writer is not credible as an active manager. 2. He doesn't prove his point. H...
by SpaceCommander
Tue Sep 09, 2014 8:01 am
 
Forum: Investing - Theory, News & General
Topic: ETF Proliferation leads to market inefficiencies?
Replies: 22
Views: 1426

Re: ETF Proliferation leads to market inefficiencies?

Nisi, Point well noted. However, we're taking shots at the writer instead of actually addressing his argument. Could it be that when ETF capitalizations were minuscule, the ramifications were negligible? However, now that ETF's have exploded in popularity, there are indeed market impacts that will e...
by SpaceCommander
Mon Sep 08, 2014 7:00 pm
 
Forum: Investing - Theory, News & General
Topic: ETF Proliferation leads to market inefficiencies?
Replies: 22
Views: 1426

Re: ETF Proliferation leads to market inefficiencies?

I see this as a much greater issue in the small cap realm with their smaller trading volumes. It's unlikely ETF inflows will affect AAPL or XOM, but a smallcap with 50K average volume would be much more vulnerable, right? The whole point of ETF's is to track the performance of a basket of stocks. If...
by SpaceCommander
Mon Sep 08, 2014 6:19 pm
 
Forum: Investing - Theory, News & General
Topic: ETF Proliferation leads to market inefficiencies?
Replies: 22
Views: 1426

ETF Proliferation leads to market inefficiencies?

An active trader comments on opportunity in small caps where ETF proliferation results in mispricing. Any merit to this thesis? Another disruptive factor to price discovery has been the proliferation of exchange-traded funds (ETFs). Accounting for more than 30 percent of trading volume in the market...
by SpaceCommander
Mon Sep 08, 2014 5:25 pm
 
Forum: Investing - Theory, News & General
Topic: ETF Proliferation leads to market inefficiencies?
Replies: 22
Views: 1426

Re: Role of Non-Vanguard Index funds in your portfolio

I use RPV for it's large cap value weighting. PRFZ follows a "fundamental" index and I'm pleased with its performance. DGS gets me a small cap tilt to my emerging markets allocation. All funds with no Vanguard equivalent. The Vanguard assets I have tend to be Admiral shares instead of ETF'...
by SpaceCommander
Sat Sep 06, 2014 4:08 pm
 
Forum: Investing - Theory, News & General
Topic: Role of Non-Vanguard Index funds in your portfolio
Replies: 15
Views: 1055

Re: Own individual stocks? Advisor recommends 20% in blue ch

An advisor can add value beyond merely helping you determine an asset allocation. However, 1% is a steep price to pay for that service. I'd look for a less expensive option. Isn't Rick Ferri's shop at Portfolio Solutions just a fraction of that? How much personal assistance do you really need?
by SpaceCommander
Sat Sep 06, 2014 4:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Own individual stocks? Advisor recommends 20% in blue chips?
Replies: 38
Views: 2950

Re: Peter Lynch was wrong

...Peter Lynch was not lucky. Agreed. When you drink deeply from the well of EMH, EVERYONE who outperforms is merely lucky... Buffett, Lynch, Templeton, et.al. all blinded by their success into thinking their random outperformance is due to skill. Those who outperform just got lucky (or took more r...
by SpaceCommander
Sat Sep 06, 2014 9:00 am
 
Forum: Investing - Theory, News & General
Topic: Peter Lynch was wrong
Replies: 64
Views: 6292

Re: Holding Cash because Tried to time Market

So what have we learned about prognostication here? You would do well to determine an appropriate allocation (the wiki can help), set it, and then let it do it's thing. Worrying about the short-term is unproductive. If these funds are not needed for 10-20 years, then why worry about a possible negat...
by SpaceCommander
Thu Sep 04, 2014 12:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Holding Cash because Tried to time Market
Replies: 78
Views: 6739

Re: Why is REIT only sector fund recommended in slice & dice

To piggyback on VT above: REITs aren't the only entities that have a peculiar structure and tax treatment. If you want to slice/dice with a tilt to REITs, then to be consistent, why not MLPs? In fact, to get a piece of the private equity market, why not Business Development Corporations? BDC's also ...
by SpaceCommander
Wed Sep 03, 2014 4:49 pm
 
Forum: Investing - Theory, News & General
Topic: Why is REIT only sector fund recommended in slice & dice?
Replies: 113
Views: 8203

Re: Taxable account as emergency fund?

I don't see any reason why you can't take a small chunk of your taxable account and invest it in something fairly conservative and call that portion your "emergency fund". Sounds like you're in great shape, however you don't mention the security of your job. That job security (or lack ther...
by SpaceCommander
Wed Sep 03, 2014 3:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Taxable account as emergency fund?
Replies: 9
Views: 838

Re: Should I ? TSP => Fidelity PAS

You should probably stop trading your TSP account. Determine an appropriate allocation, set it, and leave it alone. The TSP has all the funds you need for a successful portfolio. If you must, you can roll it over to an IRA with Vanguard and invest in other asset classes (like REITs, etc), but I don'...
by SpaceCommander
Wed Sep 03, 2014 2:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I ? TSP => Fidelity PAS
Replies: 11
Views: 578

Re: Will Bill Gross beat the Total Bond Market Index?

IMHO, Gross will outperform the Total Bond index because he will take higher risk than that index. Also, Pimco is more than Bill Gross. No doubt, he's their star manager, but Pimco is a world class bond shop. If I were to have an active bond fund, I wouldn't want anyone other than Pimco at the helm....
by SpaceCommander
Tue Sep 02, 2014 4:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Will Bill Gross beat the Total Bond Market Index?
Replies: 57
Views: 6108

Re: 100% Stock Thread Collection

My humble contribution from Jan 2008:

viewtopic.php?f=10&t=11735
by SpaceCommander
Mon Sep 01, 2014 9:16 am
 
Forum: Investing - Theory, News & General
Topic: 100% Stock Thread Collection
Replies: 93
Views: 5858

Re: S&P 500 Equal Weight Index

Joel Greenblatt is a fan of the equal weight approach and estimates it will net +2% per year to total returns over the long haul over the S&P500. He explains his reasoning in his latest book, "The Big Secret for the Small Investor". FYI.
by SpaceCommander
Mon Aug 25, 2014 7:25 pm
 
Forum: Investing - Theory, News & General
Topic: S&P 500 Equal Weight Index
Replies: 10
Views: 973

Re: Beat The Street's Permanent Portfolio

Fun with data mining and backtesting! Love it!
by SpaceCommander
Fri Aug 15, 2014 7:29 pm
 
Forum: Investing - Theory, News & General
Topic: Beat The Street's Permanent Portfolio
Replies: 36
Views: 3394

Re: Dividend Strategy Ain't For Everyone

Image

This is what crosses my mind when I think of the Boglehead vs. Income stock approaches
by SpaceCommander
Sun Aug 03, 2014 1:54 pm
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 11854

Re: Dividend Strategy Ain't For Everyone

Someone said, "Dividends might not be reliable in the future." I might add: capital appreciation might not be reliable in the future. If anything, the dividends from solid blue chips are far more reliable than expected capital appreciation. Please don't think Japan can't happen here. Indee...
by SpaceCommander
Sun Aug 03, 2014 8:47 am
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 11854

Re: Dividend Strategy Ain't For Everyone

As noted many times before, this forum is hardly the place for a rational discussion of income stock investing. It quickly degenerates into name calling and put downs; frankly, it's tiresome. To proudly assert that income stock investors are irrational, illogical, ignorant, with "blinders on&qu...
by SpaceCommander
Fri Aug 01, 2014 8:36 pm
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 11854

Re: I have access to a military TSP...worth it?

During my first year on active duty as a freshly minted officer, I was introduced to the TSP. I took a passing look at it and saw pitiful few fund options, and quickly dismissed it. After about a year, I revisited the TSP and this time looked at it more carefully. Sure, the investment options were f...
by SpaceCommander
Sun Jul 27, 2014 6:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: I have access to a military TSP...worth it?
Replies: 13
Views: 1160

Re: Dividend Growth Investing vs Index Funds

Two lumberjacks arguing about the best way to chop down a tree. "A sharp axe is the way to go." Says the first. The other disagrees, "You can't go wrong with a good saw." The axe club ridicules the saw group; whereas the saw crowd thinks the axe guys are backwards. At the end of ...
by SpaceCommander
Thu Jul 24, 2014 5:43 pm
 
Forum: Investing - Theory, News & General
Topic: Dividend Growth Investing vs Index Funds
Replies: 14
Views: 1503
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