Rick Ferri

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Rick Ferri. Photo by Paul (sddiehard).

Rick is a bogleheads.org reading list author

My name is Richard Ferri (Rick). I have been in the investment business for over 20 years. The first 10+ as a broker and the last 10+ years as a low-fee investment advisor.

My title is Founder of Portfolio Solutions, LLC, an investment management firm based Troy, MI. Portfolio Solutions manages close to $1 billion in separately accounts for high-net-worth individuals, families, non-profit organizations, and corporate pension plans. The firm specializes in a low-cost, tax-efficient, asset allocation investment approach to building wealth.
Education:

  • Bachelor of Science degree in Business Administration from the University of Rhode Island.
  • Master of Science degree in Finance from Walsh College.
  • Chartered Financial Analyst (CFA).

Prior to joining the investment community in 1988, I served as an officer and jet pilot in the U.S. Marine Corps. In total, I served for 21 years and retired from the Marine Corps Reserve in early 2001.

I have authored six books. My latest book, The Power of Passive Investing: More Wealth with Less Work, shows how passive investors who buy the market will capture better results than most active investors who try to beat the market. The ETF Book is a comprehensive guide to the illusive world of exchange-traded funds. Other books are Serious Money: Straight Talk about Investing for Retirement [free on-line], All About Index Funds [2nd Edition: McGraw-Hill], All About Asset Allocation [McGraw-Hill] and Protecting Your Wealth in Good Times and Bad [temporarily out of print, see below].

All the royalties I earn from the sale of books is donated to the Semper Fi Fund. This non-profit organization provides immediate financial support for injured members of U.S. Armed Forces and their families.

Books

Any purchases made at Amazon.com will result in a small referral fee for us. It does not cost you anything extra.

Blog

Rick Ferri Blog

Asset classes and investment strategies are two different concepts. An asset class is a category of tangible or intangible assets whose scope may or may not be fully quantifiable. The quantifiable part is the raw material from which an investment strategy is created. US equity is an asset class that’s fairly easy to define and measure. How one invests in US equity is an investment strategy, and there are many ways.
What people say they believe about financial risk and the way they think they’ll act under market stress is often contradicted by their behavior. Long-term investors frequently become short-sighted at the first sign of trouble. Many times this reaction is brought on by answering an investment questionnaire under the influence of recency bias.
Volatility. Investors hate it. Any downturn in stocks creates fear for even the most experienced investor. We can’t get around it. The feeling is natural. When something is cutting away at our net worth, we want to stop it. “It would be nice to have my money in cash right now,” our minds tell us, even though we know that’s not in our best long-term interest.
There are two categories of investors in this world: performance takers and performance seekers. A performance taker is satisfied with earning a fair share of the market’s return and weathering the risk that comes with it. A performance seeker wants more return and less risk, and pays for it in more than one way.
Beating the market using mutual funds isn’t easy. The hope of finding fund managers who steadily beat their benchmarks may seem like a worthwhile venture, but the only people who seem to earn steady profits from active mutual fund strategies are companies selling products. A persistent “performance gap” exists between investor returns and the returns of the funds they invest in.

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Video

Rick Ferri discusses his book, The Power of Passive Investing, with Morningstar.

See also

External links

Website