Search found 497 matches

by SpaceCommander
Mon Jun 15, 2015 6:38 am
Forum: Investing - Help with Personal Investments
Topic: Clean investing in a single stock
Replies: 66
Views: 7942

Re: Clean investing in a single stock

This kind of foolhardy speculation is like running through a dynamite factory with a burning match; you might live, but you're still an idiot. (memorable quip by Joel Greenblatt). :mrgreen:
by SpaceCommander
Mon Jun 08, 2015 10:06 am
Forum: Investing - Help with Personal Investments
Topic: Do dividends keep up with inflation?
Replies: 6
Views: 1047

Re: Do dividends keep up with inflation?

I think the income from a basket of dividend aristocrats will handily outpace inflation over time. Another question is whether or not this is a suitable strategy for maximum total returns over time. But if your concern is simply for inflation adjusted income, then yes; a basket of aristocrats will t...
by SpaceCommander
Sun Apr 19, 2015 4:20 am
Forum: Investing - Help with Personal Investments
Topic: Two Comma Club
Replies: 66
Views: 9838

Re: Two Comma Club

A memorable milestone. Congrats. When I crossed the 2 comma threshold, I was the middle east sitting in the desert with the Marines. I was in a place where I could get a wifi connection, so I checked my accounts to find that I was finally in 7 figures. I had to tell someone, so I told a buddy nearby...
by SpaceCommander
Wed Feb 25, 2015 3:01 am
Forum: Investing - Theory, News & General
Topic: Buy and Hold Forever Stocks
Replies: 101
Views: 9963

Re: Buy and Hold Forever Stocks

Over its three-year lifespan (so far), Morningstar's MOAT etf has fallen short of the index (VTI). I wouldn't be surprised to see MOAT outperform in bear markets but I suspect that the wide-moat argument is well-enough known that it has already been priced in. OTOH, AAPL is certainly a wide-moat st...
by SpaceCommander
Wed Feb 25, 2015 2:43 am
Forum: Investing - Theory, News & General
Topic: 10 Interesting facts about the S&P500
Replies: 28
Views: 4024

Re: 10 Interesting facts about the S&P500

I don't know much about the S&P500 other than it's cap weighted meaning that it's overweight the most expensive stocks and underweight the cheapest ones. :) I don't think cap weighted means what you think it means. If you're going to say that it's "overweight" or "underweight&quo...
by SpaceCommander
Tue Feb 24, 2015 6:27 am
Forum: Investing - Theory, News & General
Topic: Value investing doesn't even beat the S&P 500
Replies: 55
Views: 6270

Re: Value investing doesn't even beat the S&P 500

It seems to me that the OP simply noted that people who invest in value mutual funds underperform the S&P500. Frankly, that's not all that surprising. Investors in growth mutual funds underperform too. The issue is not value vs. growth, it's mutual funds vs. the index. I thought Bogle made it cl...
by SpaceCommander
Tue Feb 24, 2015 6:16 am
Forum: Investing - Theory, News & General
Topic: Buy and Hold Forever Stocks
Replies: 101
Views: 9963

Re: Buy and Hold Forever Stocks

In reply to the OP: a "hold forever" stock is tough to identify because things change. However, a "wide moat" stock is one that can be reasonably expected to earn returns in excess of its cost of capital for the next 20 years. That's "forever" enough for me. Fortunately...
by SpaceCommander
Tue Feb 24, 2015 6:02 am
Forum: Investing - Theory, News & General
Topic: 10 Interesting facts about the S&P500
Replies: 28
Views: 4024

Re: 10 Interesting facts about the S&P500

I don't know much about the S&P500 other than it's cap weighted meaning that it's overweight the most expensive stocks and underweight the cheapest ones. :)
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: 2390

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 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Is There An Actively Managed Fund Cheaper Than An Index Fund
Replies: 25
Views: 2390

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
Sun Dec 07, 2014 10:06 am
Forum: Investing - Theory, News & General
Topic: Investing Magazines
Replies: 29
Views: 2464

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
Fri Dec 05, 2014 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Why is Dave Ramsey wrong?
Replies: 73
Views: 10803

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
Mon Dec 01, 2014 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Tools for indexers
Replies: 1
Views: 636

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 8:27 am
Forum: Investing - Theory, News & General
Topic: A rational allocation in individual stocks?
Replies: 20
Views: 1372

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
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: 8097

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 8:31 pm
Forum: Investing - Theory, News & General
Topic: A rational allocation in individual stocks?
Replies: 20
Views: 1372

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
Sat Nov 29, 2014 5:29 pm
Forum: Investing - Theory, News & General
Topic: I'm getting Slaughtered in stocks
Replies: 43
Views: 6287

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 5:10 pm
Forum: Investing - Theory, News & General
Topic: Oil / Energy ETFs
Replies: 58
Views: 5009

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
Fri Nov 21, 2014 5:18 pm
Forum: Investing - Theory, News & General
Topic: Apple Stock - Seems great, right?
Replies: 116
Views: 11894

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
Thu Nov 20, 2014 7:42 pm
Forum: Investing - Theory, News & General
Topic: Apple Stock - Seems great, right?
Replies: 116
Views: 11894

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
Fri Nov 07, 2014 11:44 am
Forum: Investing - Theory, News & General
Topic: What individual stock?
Replies: 20
Views: 1652

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
Thu Nov 06, 2014 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Good book for 13 year old?
Replies: 14
Views: 1983

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
Mon Nov 03, 2014 6:16 pm
Forum: Investing - Theory, News & General
Topic: New Tony Robbins Book on Financial Freedom
Replies: 90
Views: 24927

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
Sat Nov 01, 2014 7:34 pm
Forum: Investing - Theory, News & General
Topic: "Should You Be a Dividend Stock Investor?"
Replies: 33
Views: 3678

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
Sun Oct 26, 2014 7:39 pm
Forum: Investing - Theory, News & General
Topic: Do stocks have an intrinsic fundamental value?
Replies: 31
Views: 2789

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 5:44 pm
Forum: Investing - Theory, News & General
Topic: Do stocks have an intrinsic fundamental value?
Replies: 31
Views: 2789

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
Thu Oct 23, 2014 7:20 pm
Forum: Investing - Theory, News & General
Topic: IBM: Stock Buybacks Gone Wrong?
Replies: 66
Views: 5674

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 3:30 pm
Forum: Investing - Theory, News & General
Topic: Risk in a high dividend stock portfolio
Replies: 19
Views: 3026

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 3:05 pm
Forum: Investing - Theory, News & General
Topic: GT Advanced Technology Files for Chapter 11
Replies: 9
Views: 1673

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 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Is investing in real estate worth it?
Replies: 28
Views: 3128

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: 3128

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 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Is investing in real estate worth it?
Replies: 28
Views: 3128

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
Tue Oct 21, 2014 11:36 am
Forum: Investing - Theory, News & General
Topic: GT Advanced Technology Files for Chapter 11
Replies: 9
Views: 1673

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
Sun Oct 12, 2014 4:52 pm
Forum: Personal Consumer Issues
Topic: Are Windows Phones easy to use?
Replies: 8
Views: 994

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
Wed Sep 17, 2014 11:18 am
Forum: Personal Consumer Issues
Topic: Buying a bounce house for personal use?
Replies: 25
Views: 2448

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
Sat Sep 13, 2014 5:36 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 466
Views: 65944

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
Tue Sep 09, 2014 10:14 am
Forum: Investing - Theory, News & General
Topic: ETF Proliferation leads to market inefficiencies?
Replies: 22
Views: 1539

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 8:01 am
Forum: Investing - Theory, News & General
Topic: ETF Proliferation leads to market inefficiencies?
Replies: 22
Views: 1539

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
Mon Sep 08, 2014 7:00 pm
Forum: Investing - Theory, News & General
Topic: ETF Proliferation leads to market inefficiencies?
Replies: 22
Views: 1539

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 6:19 pm
Forum: Investing - Theory, News & General
Topic: ETF Proliferation leads to market inefficiencies?
Replies: 22
Views: 1539

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 5:25 pm
Forum: Investing - Theory, News & General
Topic: ETF Proliferation leads to market inefficiencies?
Replies: 22
Views: 1539

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
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: 1121

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 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Own individual stocks? Advisor recommends 20% in blue chips?
Replies: 38
Views: 3121

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 9:00 am
Forum: Investing - Theory, News & General
Topic: Peter Lynch was wrong
Replies: 64
Views: 6617

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
Thu Sep 04, 2014 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: Holding Cash because Tried to time Market
Replies: 78
Views: 7064

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
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: 8791

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 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable account as emergency fund?
Replies: 9
Views: 939

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 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: Should I ? TSP => Fidelity PAS
Replies: 11
Views: 616

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
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: 6468

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....

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