Article: "Why Wallstreet Hates Lazy Portfolios"

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Article: "Why Wallstreet Hates Lazy Portfolios"

Postby Majormajor78 » Thu Mar 29, 2012 8:55 am

It's nice to see an article out that embraces sound investing advice. Is it just me or are lazy portfolios and the like getting much more attention these days?

http://www.smartmoney.com/invest/strate ... _featStory
"America's investors have been ripped off as massively as a bank being held up by a guy with a gun and a mask," former Securities and Exchange Commission Chairman Arthur Levitt warned in an article in Fortune magazine a decade ago. That same year in his classic "Take On The Street," Levitt lambasted the fund industry as "a culture that thrives on hype ... withholds important information," a "cutthroat business" that "misleads investors." Today, it's worse.

Lazy Portfolios were born as a defensive move against this relentless war by guys with "masks and guns ... ripping off" America's 95 million Main Street investors. And the strategies of men like Levitt, Vanguard's Jack Bogle, Nobel Economist Daniel Kahneman, Warren Buffett, Yale's Robert Shiller and other industry giants were the inspiration
"Oh, M. le Comte, it is only a loss of money which I have sustained... nothing worth mentioning, I assure you."
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Re: Article: "Why Wallstreet Hates Lazy Portfolios"

Postby Jay69 » Thu Mar 29, 2012 9:21 am

Great article

I was looking for a good quote to post. Where to you start, could have quoted the whole artical!
"Out of clutter, find simplicity” Albert Einstein
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Re: Article: "Why Wallstreet Hates Lazy Portfolios"

Postby Majormajor78 » Thu Mar 29, 2012 10:15 am

Jay69 wrote:Great article

I was looking for a good quote to post. Where to you start, could have quoted the whole artical!


I was pretty amused when I realized the article was almost a reboot of the Bogleheads® investment philosophy wiki page: http://www.bogleheads.org/wiki/Boglehea ... philosophy
"Oh, M. le Comte, it is only a loss of money which I have sustained... nothing worth mentioning, I assure you."
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Re: Article: "Why Wallstreet Hates Lazy Portfolios"

Postby 3CT_Paddler » Thu Mar 29, 2012 10:30 am

I always thought this quote was a bit misleading from Buffett...
Warren Buffett was once asked by Bogle about his favorite holding period. "Forever," said the Sage of Omaha, the best time to sell is "never."


When you consider this fact about Berkshire Hathaway...
The median holding period is one year, with approximately 20% (30%) of stocks held for more than two years (less than six months).

http://www.cxoadvisory.com/7307/animal- ... fett-does/
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Re: Article: "Why Wallstreet Hates Lazy Portfolios"

Postby Ping Pong » Thu Mar 29, 2012 2:02 pm

3CT_Paddler wrote:I always thought this quote was a bit misleading from Buffett...
Warren Buffett was once asked by Bogle about his favorite holding period. "Forever," said the Sage of Omaha, the best time to sell is "never."


When you consider this fact about Berkshire Hathaway...
The median holding period is one year, with approximately 20% (30%) of stocks held for more than two years (less than six months).

http://www.cxoadvisory.com/7307/animal- ... fett-does/


It's not really a conflict. His favorite holding period is forever, but many underpriced assets are only worth holding for a couple of years. Others are worth holding forever. The ones worth holding forever don't get cheap very often because they're such great assets, so you may not see a large number of such purchases by Buffet.
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Re: Article: "Why Wallstreet Hates Lazy Portfolios"

Postby dharrythomas » Thu Mar 29, 2012 10:24 pm

You could do a lot worse than one of these or one of the LifeStrategy Funds and many of us will with our fine-tuning. :oops:

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Re: Article: "Why Wallstreet Hates Lazy Portfolios"

Postby Daffy » Fri Mar 30, 2012 12:24 am

dharrythomas wrote:You could do a lot worse than one of these or one of the LifeStrategy Funds and many of us will with our fine-tuning. :oops:

Harry


Exactly why I moved into the revamped LifeStrategy funds earlier this year. My efforts to time 're-balancing' or 'fine-tuning' were resulting in a 100% failure/torture rate as I would spend tremendous amount of energy agonizing over whether or not I was picking the right moment to buy/sell during a simple re-balancing event. I learned the hard way that to me 're-balancing' was just another way of "timing the market", something we all claim to strive away from as a Boglehead. Now I let Vanguard maintain my allocation for me, and I spend more time with my camera photographing wildlife and the spring colors instead of looking at market apps on my smartphone.
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