Are there any Ex-Bogleheads?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
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VictoriaF
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Re: Are there any Ex-Bogleheads?

Post by VictoriaF »

DRiP Guy wrote:OMG, what a horrible fate!

:D
Nothing is worse than the Schrödinger´s cat uncertainty in whether he is a Boglehead or an ex-Boglehead.

Victoria
Inventor of the Bogleheads Secret Handshake | Winner of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
chaz
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Re: Are there any Ex-Bogleheads?

Post by chaz »

Where is Piper Warrior?
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
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Petrocelli
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Re: Simplicity

Post by Petrocelli »

Taylor Larimore wrote:Petrocelli:
I do not follow Taylor's advice re simplicity.
Perhaps you should. :wink:
Actually, track my Vanguard portfolio against the simplest portfolio of portfolios: Target 2025.

There has never been a single 5 year period in which the Target Fund has outperformed my portfolio. On average, my portfolio had an average annual return that was .7% higher than the Target Fund.

Although I think the the overwhelming majority of investors should be in Target funds, I think more sophisticated investors can "juice" returns a little by slicing and dicing, and using some momentum plays.
Last edited by Petrocelli on Sun May 13, 2012 2:59 pm, edited 1 time in total.
Petrocelli (not the real Rico, but just a fan)
stlutz
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Re: Are there any Ex-Bogleheads?

Post by stlutz »

Just want to say how much I miss your frequent posts, Petrocelli! Different approaches make the board much more interesting and help us all to check on our assumptions of what we think is obviously true.
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NateH
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Re: Are there any Ex-Bogleheads?

Post by NateH »

jidina80 wrote:I am pleased to read when someone (especially a young person) concludes that a low-cost, well-diversified, buy-and-hold investment portfolio is the best way to future wealth. However, I am curious to learn, does anyone know of someone who was totally on-board with Vanguard and Bogle's recommended investment philosophy, but later chose a different path?

I'm not talking about someone who was simply exposed to the concepts of asset allocation and index funds, but rather someone who really 'got it' but later changed their thinking so they could try do better with market timing or stock-picking.

This might be a small thread, but who knows... :happy

Just
Sudhi ?
(back in the old M* days)
4X top-twenty S&P 500 prognosticator. I'd start a newsletter, but it would only have one issue per year. | dumb investor during 1999 tech bubble, current slice & dicer.
3504PIR
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Re: Are there any Ex-Bogleheads?

Post by 3504PIR »

Petrocelli wrote:
Alex Frakt wrote:
jh wrote:
In my taxable account I own index funds and individual stocks for dividend income. It is much easier to build income with individual stocks and the dividends are much more consistent with individual stocks. The downside is that an individual stock is riskier than an index fund, obviously. However, I have little fear investing in individual stocks for this purpose. Let's be realistic, the income from a company like Johnson & Johnson, Coca-Cola, Proctor & Gamble and so on is far less risky than the income I get from my w-2 job. I do use index funds in my taxable account, but they are mainly holdovers from when I got in at really good prices during the crises. My new money has been going into individual stocks recently.
You are engaged in a grand scheme of mental accounting. The only difference between deriving $x from dividends versus a sale of shares is that the taxes from the latter are typically lower.

I'm not suggesting that there is a huge problem with a portfolio consisting of individually held blue chips, that's probably what most of us would be doing if index funds weren't available. But it is certainly less than ideal given the alternatives. Your lack of diversification results in increased risks (individual stock risk and, given your example stocks, individual sector risk chief among them) without increasing your expected return.
This post demonstrates one of the reasons I stopped posting here frequently. Often, one will ask a question and received a bunch of buzzwords in response based on preconceived (and often incorrect) notions. Allow me to explain.

A few years back, I read Stein's Yes. You can Supercharge You Portfolio! One of the main premises of the book was that you could lower standard deviation and increase returns by adding low beta stocks to a mutual fund portfolio. The book referenced a person named Geoff Considine, who wrote a number of articles on this subject.

I, therefore, added a portfolio of 20 stocks to my portfolio which (1) had a market cap over $10 billion; (2) paid at least a a 2% dividend; (3) have a PE ratio less than 20; and (4) have a beta less than 1.

I allow dividends to go to cash, and every 2-3 months, I buy shares in a stock that is below its 5% target. That is, I rebalance with cash.

Because I only make 6 to 9 transactions a year, my expenses are between $54 and $81 a year, which is far, far less than .10% of the portfolio value.

Long story short, the addition of these stocks increased returns and decreased standard deviation, as advertised.

At bottom, given that my retirement portfolio is about 50% indexed, and all low cost Vanguard funds, I agree with the Bogleheads on most things. However, I do not agree with them on all things and often find they dismiss good ideas which could increase returns.
Amen.
hoops777
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Re: Are there any Ex-Bogleheads?

Post by hoops777 »

Amen Amen.As in most things in life when someone thinks they have the only answer they rarely do :DEvery once in awhile their is a little arrogance in bogleland :happy but this thread is an awesome source of information and the veteran posters are most helpful and very well meaning.
K.I.S.S........so easy to say so difficult to do.
chaz
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Re: Are there any Ex-Bogleheads?

Post by chaz »

I've learned a lot on this forum.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
shashi
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Re: Are there any Ex-Bogleheads?

Post by shashi »

Learned quite a bit from M* and diehard days and returning nearly after a decade... Surprise to see Taylor, Mel have become authors..where is Sudhi?

Wishes...
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Taylor Larimore
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Reply to shashi

Post by Taylor Larimore »

shashi wrote:Learned quite a bit from M* and diehard days and returning nearly after a decade... Surprise to see Taylor, Mel have become authors..where is Sudhi?

Wishes...
Hi shashi:

Mel and I got tired of telling new investors they should read a book about investing -- so we wrote our own.

I suspect Sudhi left because of the ridicule he received when his forecast "the S&P 500 would decline to 600" never happened.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
vencat
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Re: Are there any Ex-Bogleheads?

Post by vencat »

I guess Adrian Nenu would be considered an exBoglehead.
Venkat
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