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

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.
I love you man, but you’re wrong! Legionary Fidelity Magellan fund manager Peter Lynch wrote "buy what you know" in his classic book, One Up on Wall Street: How to use what you already know to make money in the market. The basic principle is simple: you're more likely to be successful in the market if you buy what you're familiar with. Peter Lynch was wrong; or at least he wasn’t quite right.
I’m an index fund investor, but I don’t invest in S&P 500 index funds. It’s not the type of index I want in my portfolio, unless I’m in a pinch. Here’s why. The S&P 500 is arguably the most important stock market index on the planet. It represents the free-float value of 500 major corporations [...]
There’s nothing like good market volatility. It makes me sleep well at night. Plunging prices, several days of bad news, it makes me all smiles. No, I’m not a masochist. I just know that weak-minded investors become nervous and sell in a roller-coaster market, and that gives me more opportunities to buy at cheap prices.
I’m a diehard index fund fan. I’ve written books on index funds, lectured on index funds, co-authored an award-winning paper on portfolios of index funds, and Forbes even named me “The Indexer” when I began writing for them several years ago. The problem with being “The Indexer” is that I don’t invest in all index funds. Truth be told, my portfolio is a combination of funds that follow indexes, quantitative funds that don’t follow indexes and actively managed funds. I don’t even consider following an index as being paramount in portfolio management as long as you’re capturing the risk premiums you’re seeking in a low-cost and efficient manner.

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Video

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

See also

External links

Website