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Re: IBM: Stock Buybacks Gone Wrong?

IBM is having a difficult time growing revenue and earnings. Buybacks can't hold up the stock price. And it seems likely that the money spent on buybacks would have been better spent on other investments than itself. They may well end up a great business case of when not to do buybacks. This is a c...
by dnaumov
Thu Oct 23, 2014 8:06 pm
 
Forum: Investing - Theory, News & General
Topic: IBM: Stock Buybacks Gone Wrong?
Replies: 65
Views: 3883

Re: When people put all their eggs in the wrong basket

Another thing I learned from that thread is that it must take a lot of work to be an active investor in specific stocks. Lots of reading of SEC filings, tons of research about the yet-to-be-released iphone, etc. Maybe my laziness guided me to asset allocation... It is very time-involving indeed. I ...
by dnaumov
Mon Oct 13, 2014 5:57 pm
 
Forum: Investing - Theory, News & General
Topic: When people put all their eggs in the wrong basket
Replies: 227
Views: 23031

Re: When people put all their eggs in the wrong basket

People seem to have a rather variable definition of a "basket". If someone knows what he is doing and knows the stocks he owns as well as his children if not better, I wouldn't call someone whose portfolio consisted of 10 individual stocks crazy by any measure, but 1-2 is just plain stupid...
by dnaumov
Mon Oct 13, 2014 5:44 pm
 
Forum: Investing - Theory, News & General
Topic: When people put all their eggs in the wrong basket
Replies: 227
Views: 23031

Re: International allocation

Where am I wrong, here? Not wrong, just some folks don't like adding that much risk for the diversification Int. stocks allow. I really don't think there is a right answer here. You have that completely backwards. You can't possibly have LESS risk by heavily tilting towards a single country. Unless...
by dnaumov
Fri Aug 29, 2014 4:49 pm
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 81
Views: 5153

Re: International allocation

Where am I wrong, here? Not wrong, just some folks don't like adding that much risk for the diversification Int. stocks allow. I really don't think there is a right answer here. You have that completely backwards. You can't possibly have LESS risk by heavily tilting towards a single country. Unless...
by dnaumov
Thu Aug 28, 2014 1:20 pm
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 81
Views: 5153

Re: Your biggest "Missed Money" event that still kills you?

I have actually progressed (or vise-versa, however you look at it) from indexing to individual stocks and within a couple of years of doing so I learned a pretty valuable lesson: I seem to be pretty decent at picking when and what to buy, but am utterly horrible at selling. I keep track of ALL indiv...
by dnaumov
Tue Aug 19, 2014 4:26 am
 
Forum: Investing - Theory, News & General
Topic: Your biggest "Missed Money" event that still kills you?
Replies: 102
Views: 8361

commodity funds and currency risk

I want to add a 5% allocation to a broad commodity basket to my portfolio, but I've ran into a snag: I don't think I understand the potentially involved currency risk (if any). The thing is: I am located in Finland, so my local currency is the euro. I have a good understanding of currency risk when ...
by dnaumov
Sun Aug 17, 2014 2:20 pm
 
Forum: Investing - Theory, News & General
Topic: commodity funds and currency risk
Replies: 8
Views: 619

Re: Why would a passive investor use ETFs?

Because a wide selection of high-quality index mutual funds are not available in your country.
by dnaumov
Thu Aug 14, 2014 7:01 pm
 
Forum: Investing - Theory, News & General
Topic: Why would a passive investor use ETFs?
Replies: 60
Views: 3870

Re: GoPro IPO

My galaxy S4 camera is just fine... You mean tolerable. Good luck getting it to take photos/videos that are anywhere near the quality required for publishing in print or on a bluray disc. By spending time and tinkering with settings every single time your environment changes you might get a reasona...
by dnaumov
Sat Jun 28, 2014 12:50 pm
 
Forum: Investing - Theory, News & General
Topic: GoPro IPO
Replies: 30
Views: 3040

Re: GoPro IPO

I don't see any moat either. I think they are smart to do an IPO right at the height of their popularity and growth. Their marketing strategy has been brilliant so far. I bet it won't be long before smart phones (with a special bracket and/or waterproof case as needed) can do everything GoPro can d...
by dnaumov
Sat Jun 28, 2014 4:10 am
 
Forum: Investing - Theory, News & General
Topic: GoPro IPO
Replies: 30
Views: 3040

Re: High Dividend Yield on VXUS?

Angelus359 wrote:US stocks currently have a high price to earnings ratio, which drives % yield down

Re-read what the OP is actually asking.
by dnaumov
Fri Jun 27, 2014 4:41 am
 
Forum: Investing - Theory, News & General
Topic: High Dividend Yield on VXUS?
Replies: 7
Views: 1217

Re: What's the deal with the all the different prices for ET

However, you have a larger issue - investing in leveraged ETFs. Quite simply, this is not a way to save for your retirement. Please see our wiki: Inverse and leveraged ETFs The Bogleheads investing philosophy is a long-term buy and hold approach which invests in the entire market using low-cost fun...
by dnaumov
Mon Jun 02, 2014 5:30 am
 
Forum: Investing - Theory, News & General
Topic: What's the deal with the all the different prices for ETFs?
Replies: 9
Views: 744

Re: Should I use my margin to buy bonds?

jdilla1107 wrote:One year treasuries pay much less than 1.59%.

If you buy longer term you have interest rate risk.

You only have interest rate risk if you intend to sell instead of holding to maturity.
by dnaumov
Tue May 27, 2014 6:51 pm
 
Forum: Investing - Theory, News & General
Topic: Should I use my margin to buy bonds?
Replies: 41
Views: 3727

Re: Bitcoin Info [Investing in Cryptocurrencies]

chaz wrote:You can't put a bitcoin in a wallet or purse. Just binary code.

Incorrect: http://www.wired.com/2014/01/casascius-back/
by dnaumov
Tue May 27, 2014 12:05 pm
 
Forum: Investing - Theory, News & General
Topic: Bitcoin Info [Investing in Cryptocurrencies]
Replies: 8
Views: 1051

Re: Bitcoin Info [Investing in Cryptocurrencies]

It is not investing, it is speculating. I agree with Buffett, no it was Charlie Munger come to think of it, ' it's rat poison '. That Munger comment actually had me disgusted for quite some time: sure it's rat poison... for people who have very large financial stakes in traditional banking and paym...
by dnaumov
Mon May 26, 2014 9:07 pm
 
Forum: Investing - Theory, News & General
Topic: Bitcoin Info [Investing in Cryptocurrencies]
Replies: 8
Views: 1051

Re: ADR Mechanics

If you want to trade on foreign exchanges directly, have a look at Interactive Brokers, while they don't offer direct access to Russia, they do offer access to a lot of different exchanges around the globe. Many russian companies are listed on the London Stock Exchange and IB provides you with acces...
by dnaumov
Tue May 20, 2014 4:59 am
 
Forum: Investing - Theory, News & General
Topic: ADR Mechanics
Replies: 18
Views: 1109

Re: What if the market doesn't recover for a long period?

I'd take long term deflation over a bull market any day. Make cash and bonds worth something. Really? Have you considered that long-term deflation can destroy a country's economy? In a serious deflationary period, people and businesses are incentivized to hold cash (as it may return more than any o...
by dnaumov
Fri May 16, 2014 10:02 am
 
Forum: Investing - Theory, News & General
Topic: What if the market doesn't recover for a long period?
Replies: 40
Views: 5800

Re: Poll:Do small stocks have higher expected returns than l

There is also an argument to be made that many (most?) large companies got large by doing things right, which says something about the underlying characteristic of the business.
by dnaumov
Thu May 15, 2014 7:55 am
 
Forum: Investing - Theory, News & General
Topic: Poll:Do small stocks have higher expected returns than large
Replies: 78
Views: 4960

Re: for those interested in dividend strategies

In the universe of non-index investing where one utilises stock screening and selection, I believe dividend strategies make a lot of sense as they vastly simplify the decision on when to sell a stock, reducing the odds of a behavioural mistake. There is also strong evidence that stocks of companies ...
by dnaumov
Wed May 14, 2014 10:06 am
 
Forum: Investing - Theory, News & General
Topic: for those interested in dividend strategies
Replies: 53
Views: 6939

Re: Federal reserve balance sheet may take 5-8 years to shri

Does a shrinking federal reserve balance sheet for 5 to 8 years have any consequences for stock and bond investors? Shrinking the balance sheet would have the effect of "taking away the punch bowl". No. Stopping the growth of the balance sheet would be akin to "taking away the punch ...
by dnaumov
Fri May 09, 2014 7:12 pm
 
Forum: Investing - Theory, News & General
Topic: Federal reserve balance sheet may take 5-8 years to shrink
Replies: 41
Views: 4317

Re: Vanguard etf's dont reinvest dividends

In fact, you have it BACKWARDS. Reinvested dividends create additional tax lots which complicate things. No, he doesn't have it backwards. In most european countries, by far, funds that automatically reinvest the dividends increase the fund NAV and don't force new shares onto their investors. Thus,...
by dnaumov
Thu May 08, 2014 9:35 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard etf's dont reinvest dividends
Replies: 10
Views: 1264

Re: SEC Investing Alert: Bitcoin and Other Virtual Currency

BigTom wrote:I thought bit coin was done after they lost 400 million . Through a hack or something . I wouldn't trust it .

If somebody broke into your house and stole your valuable posessions, would you "lose faith" in the valuable posessions you had?
by dnaumov
Thu May 08, 2014 7:45 am
 
Forum: Investing - Theory, News & General
Topic: SEC Investing Alert: Bitcoin and Other Virtual Currency
Replies: 10
Views: 1052

Re: SEC Investing Alert: Bitcoin and Other Virtual Currency

Bitcoin is a fantastic invention but I find it very jarring when people talk about "bitcoin investment opportunities and risks" (unless the talk is about investing in bitcoin-related companies). Bitcoin is a medium of exchange, a currency (no matter what central banks and taxation authorit...
by dnaumov
Thu May 08, 2014 3:47 am
 
Forum: Investing - Theory, News & General
Topic: SEC Investing Alert: Bitcoin and Other Virtual Currency
Replies: 10
Views: 1052

Re: accessing the profitability factor

It's much easier to wrap your head around the persistance of the value premium: you can't bid value stocks to the moon - a group of stocks becoming relatively overvalued automatically means there has to be another group that's undervalued in comparison.
by dnaumov
Tue May 06, 2014 5:26 am
 
Forum: Investing - Theory, News & General
Topic: accessing the profitability factor
Replies: 10
Views: 886

Re: Long Term Risks of Global Stock Markets

As I own VT, I'd be really curious to sell a Total World All Cap entry in the examples above (and not GDP-weighted World Portfolio).
by dnaumov
Wed Apr 23, 2014 7:14 pm
 
Forum: Investing - Theory, News & General
Topic: Long Term Risks of Global Stock Markets
Replies: 31
Views: 3297

Re: Global Minimum Volatility Fund

I own this fund for a large share of my portfolio. Previously, I owned a similar index (ACWV). I took a look at ACWV and noticed it trades at a rather hefty premium to the global total stock market: ACWV: PE 22.78, PB 4.28 VT: PE 18.3, PB 2.0 Pretty interesting, considering that I previously read t...
by dnaumov
Tue Apr 22, 2014 5:59 pm
 
Forum: Investing - Theory, News & General
Topic: Global Minimum Volatility Fund
Replies: 29
Views: 2864

Re: Can we ever expect VG to offer ISV or EMV?

I would be all over an All-World Small Cap Value ETF.
by dnaumov
Tue Apr 22, 2014 5:36 pm
 
Forum: Investing - Theory, News & General
Topic: Can we ever expect VG to offer ISV or EMV?
Replies: 18
Views: 1753

global bond index funds

First of all, I am not a US resident, so no need to answer my questions with a "just buy US Treasuries / Total Bond Market" :) Why are global bond index funds market weighted? While this does make sense for stocks, this doesn't at all seem to make sense for bonds. Why would you want to loa...
by dnaumov
Thu Apr 17, 2014 8:20 am
 
Forum: Investing - Theory, News & General
Topic: global bond index funds
Replies: 2
Views: 483

Re: Investor from Finland

I am not at all saying it is a bad instrument. The main point I was trying to make to you is that the european-domiciled reinvesting ETFs are not at all expensive when you take into account the effect of taxation and that just simply comparing their TER to Vanguard ETF TER is not smart. One should m...
by dnaumov
Sun Apr 13, 2014 3:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

Such is the magic of compounding reinvested dividends over a long period of time. Over a short timeframe, such as 3-5 years, obviously stock price movements will have the biggest impact by far, but over 25-30 years or even longer periods, roughly half of your overall total return will come from rei...
by dnaumov
Sun Apr 13, 2014 2:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

Personally, I consider both distributing and reinvesting ETFs to be roughly equally reasonable choices. I own VT myself, because it's a fantastic 1-fund solution with both developed and emerging markets and with both large and small caps, all in one, with good liquidity and low spreads. But if there...
by dnaumov
Sun Apr 13, 2014 10:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

Such is the magic of compounding reinvested dividends over a long period of time. Over a short timeframe, such as 3-5 years, obviously stock price movements will have the biggest impact by far, but over 25-30 years or even longer periods, roughly half of your overall total return will come from rein...
by dnaumov
Sun Apr 13, 2014 7:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

Look at the pages, they have all the info. Yes they reinvest dividends and no, they are not listed on the finnish exchange. Lets put it this way: if you intend to buy once and sit on it forever without ever buying more shares, I'd go with SSAC as it would reinvest the dividends back and compound ov...
by dnaumov
Sat Apr 12, 2014 6:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

It has often been written on this forum that "capitalizing funds are superior". I want to stress that any advantage or disadvantage depends on national tax laws that can be completely different. For example, consider these (national) tax laws that make capitalizing funds less attractive: ...
by dnaumov
Sat Apr 12, 2014 6:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

Look at the pages, they have all the info. Yes they reinvest dividends and no, they are not listed on the finnish exchange. Lets put it this way: if you intend to buy once and sit on it forever without ever buying more shares, I'd go with SSAC as it would reinvest the dividends back and compound ov...
by dnaumov
Sat Apr 12, 2014 3:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

Look at the pages, they have all the info. Yes they reinvest dividends and no, they are not listed on the finnish exchange. They seem to only be listed on the London exchange, meaning that I have to pay 0.50% extra as taxes each time I buy securities from that exchange. Ah, tax laws. :twisted: You ...
by dnaumov
Sat Apr 12, 2014 3:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

Look at the pages, they have all the info. Yes they reinvest dividends and no, they are not listed on the finnish exchange. Lets put it this way: if you intend to buy once and sit on it forever without ever buying more shares, I'd go with SSAC as it would reinvest the dividends back and compound ove...
by dnaumov
Sat Apr 12, 2014 3:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

Is this a dividend reinvesting ETF? http://www.spdrseurope.com/product/fund.seam?ticker=SPY5%20GY Looks good, pretty cheap too (TER 0.15%) and it can be bought in Euros. Still need to find a global-EX US ETF though. Income Treatment: Distribution. On a sidenote: considering you live in Finland, why...
by dnaumov
Sat Apr 12, 2014 2:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

Is this a dividend reinvesting ETF? http://www.spdrseurope.com/product/fund.seam?ticker=SPY5%20GY Looks good, pretty cheap too (TER 0.15%) and it can be bought in Euros. Still need to find a global-EX US ETF though. Income Treatment: Distribution. On a sidenote: considering you live in Finland, why...
by dnaumov
Sat Apr 12, 2014 2:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

Now, to confuse you even further: In my personal opinion, picking Vanguard ETFs that distribute dividends or european-domiciled ETFs that reinvest them is really a matter of taste. If "cheap" is the one and only thing that truly matters to you, you do, in fact, want the european-domiciled ...
by dnaumov
Sat Apr 12, 2014 2:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

NONE of the Vanguard ETFs automatically reinvest dividends. Not a single one. DB-X offers some ETFs that reinvest dividends and some that don't. Same thing for iShares. You need to look up each fund and look at info page for "use of income". Some will say "reinvesting" and some ...
by dnaumov
Sat Apr 12, 2014 2:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

NONE of the Vanguard ETFs automatically reinvest dividends. Not a single one. DB-X offers some ETFs that reinvest dividends and some that don't. Same thing for iShares. You need to look up each fund and look at info page for "use of income". Some will say "reinvesting" and some w...
by dnaumov
Sat Apr 12, 2014 1:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Investor from Finland

You seem to be very confused on a multitude of issues. First of all, the DB-X and iShares ETFs with 0,4-0,6% TER are VERY CHEAP. You are failing to take into account that these ETFs automatically reinvest the dividends back into the fund, allowing you to dodge the need to pay taxes on them. As a per...
by dnaumov
Sat Apr 12, 2014 1:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Is there an alternative view ? [Alternatives to index fu

nisiprius wrote:Now, add to this the fact that DFA's funds are not index funds, but it is a little difficult for someone who isn't a DFA advocate to give a fair presentation of what they are.

I call them passive quant funds.
by dnaumov
Sat Apr 12, 2014 11:50 am
 
Forum: Investing - Theory, News & General
Topic: Is there an alternative view ? [Alternatives to index funds]
Replies: 14
Views: 2001

Re: Investor from Finland

First of all, when investing in stock market ETFs, you shouldnt really care about the currency said ETFs trade in beyond considering the costs of exchanging currencies when you buy and sell ETF shares. An S&P500 ETF will give you the same return regardless of whether you pay for it in USD, EUR o...
by dnaumov
Sat Apr 12, 2014 11:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 1608

Re: Ishares lowered TER to 0,07%

In general: US-domiciled stock ETFs traded on US exchanges: + offer higher trading volume and as a result, smaller spreads + generally offer noticably lower fees (the Ireland-domiciled SACC fund you mention is a VERY rare exception to this) - they pay out their distributions, meaning most european i...
by dnaumov
Wed Apr 09, 2014 9:55 am
 
Forum: Investing - Theory, News & General
Topic: Ishares lowered TER to 0,07%
Replies: 3
Views: 437

Re: Ishares lowered TER to 0,07%

Most of the people on this forum are US investors and as such, are unfamiliar with ETFs that accumulate/reinvest dividends back into the fund. Technically such funds can exist in the US, but since due to US tax code, the holder of the ETF shares would still be liable for taxes to be paid on the dist...
by dnaumov
Wed Apr 09, 2014 9:38 am
 
Forum: Investing - Theory, News & General
Topic: Ishares lowered TER to 0,07%
Replies: 3
Views: 437

Re: very long term perspective

selftalk wrote:It is my understanding if I read it correctly that John Bogle, in his speech in 2002, said that all the asset classes return about the same over the very long term. I would like to see this for myself on a chart.

I am pretty sure he never said that.
by dnaumov
Sun Jan 26, 2014 6:19 pm
 
Forum: Investing - Theory, News & General
Topic: very long term perspective
Replies: 13
Views: 1243

Re: My Take on Gold

How on earth are you people giving gold a "fair value" of 600$ when marginal production costs are above 1200$? Yes, an article on Yahoo says that the cost of production at many mines is $1000 - $1200 per ounce. Keith It's a mistake to assume that the price of gold cannot drop below the co...
by dnaumov
Sat Jun 29, 2013 4:00 am
 
Forum: Investing - Theory, News & General
Topic: My Take on Gold
Replies: 213
Views: 17955

Re: My Take on Gold

How on earth are you people giving gold a "fair value" of 600$ when marginal production costs are above 1200$? What fraction of the world gold supply is produced each year? Does gold mined hundred or thousands of years ago degrade? Demand for physical is not exactly drying up, quite the c...
by dnaumov
Fri Jun 28, 2013 1:35 pm
 
Forum: Investing - Theory, News & General
Topic: My Take on Gold
Replies: 213
Views: 17955
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