Search found 3158 matches

by JoMoney
Mon May 02, 2016 2:29 am
Forum: Investing - Theory, News & General
Topic: "Indexed Investing: A Prosaic Way to Beat the Average Investor" by W. Sharpe
Replies: 62
Views: 4120

Re: "Indexed Investing: A Prosaic Way to Beat the Average Investor" by W. Sharpe

I agree, but the point I was making is that the average investor probably wants bonds, and in_reality is using his claims about Sharpe's Theorems implications about VTSAX beating the U.S. equities market somehow implying that it is the best investment for the "average investor". I reject ...
by JoMoney
Mon May 02, 2016 12:39 am
Forum: Investing - Theory, News & General
Topic: "Indexed Investing: A Prosaic Way to Beat the Average Investor" by W. Sharpe
Replies: 62
Views: 4120

Re: "Indexed Investing: A Prosaic Way to Beat the Average Investor" by W. Sharpe

It does not necessarily equate to "average investor", but more along the lines of "average invested dollar", and it's beyond a theorem it's essentially a proof. Under the terms he gives it's not even up for debate, the quibble is over scenarios that are outside the realm of Sharp...
by JoMoney
Mon May 02, 2016 12:21 am
Forum: Investing - Theory, News & General
Topic: "Indexed Investing: A Prosaic Way to Beat the Average Investor" by W. Sharpe
Replies: 62
Views: 4120

Re: "Indexed Investing: A Prosaic Way to Beat the Average Investor" by W. Sharpe

Passive investing does not equal total market investing. Passive investing is just limited transactions, "buy and hold". It's not a statement about anything in your portfolio. But the math is such for any portfolio, that the group of people actively trading the components of that portfolio...
by JoMoney
Sun May 01, 2016 5:00 pm
Forum: Investing - Theory, News & General
Topic: Sound advice from Warren Buffett
Replies: 15
Views: 2468

Re: Sound advice from Warren Buffett

Compensation should go down over time when innovation and competition brings betters/faster/cheaper ways of doing the same thing. I don't work in the finance industry, but similar things have happened to me. When an employer was planning a big layoff, they gathered us all into a meeting and gave a p...
by JoMoney
Sun May 01, 2016 4:32 pm
Forum: Investing - Theory, News & General
Topic: Wykoff: Four important phases of market trends
Replies: 23
Views: 1144

Re: Wykoff: Four important phases of market trends

It's always advisable for someone risk averse to take some off the table while times are good, and a standard policy portfolio with a percentage of stocks/bonds will do just that. No chart patterns or CAPE ratios needed. If using some valuation formula helps settle things in your own mind, that's gr...
by JoMoney
Sun May 01, 2016 3:15 pm
Forum: Investing - Theory, News & General
Topic: Fundamental Indexing Is The Better Way To Value Tilt?
Replies: 17
Views: 1317

Re: Fundamental Indexing Is The Better Way To Value Tilt?

... My guess is that the 1979 starting point is the inception date of the Russell indexes. ... FWIW, the Russell indexes didn't exist until 1984. They had data to create the major index back to 1978 as a starting point. The style indexes for Value and Growth didn't get created until sometime later,...
by JoMoney
Sun May 01, 2016 1:25 am
Forum: Investing - Theory, News & General
Topic: Shareholders want their (voting) rights back
Replies: 16
Views: 1255

Re: Shareholders want their (voting) rights back

The irony here is overwhelming. As Bogleheads you don't care. You buy all stocks. The good with the bad. https://personal.vanguard.com/us/insights/article/proxy-commentary-042013 http://www.berkshirehathaway.com/2002ar/2002ar.pdf ...Jack Bogle of Vanguard fame, Chris Davis of Davis Advisors, and Bi...
by JoMoney
Sun May 01, 2016 1:07 am
Forum: Personal Consumer Issues
Topic: I cannot stop buying... [Investing/Personal Finance Books]
Replies: 27
Views: 3173

Re: I cannot stop buying...

A great resource (if you can get your work or library to provide it for you) is Safari https://www.safaribooksonline.com/search/?query=John%20Bogle&sort=relevance&highlight=true In addition to the tech books they're primarily associated with, they have an amazing selection of books on financ...
by JoMoney
Sat Apr 30, 2016 7:29 pm
Forum: Investing - Theory, News & General
Topic: Sound advice from Warren Buffett
Replies: 15
Views: 2468

Re: Sound advice from Warren Buffett

Another link, to a video snip it of Warren giving the speech directly: http://finance.yahoo.com/video/warren-buffett-slams-hedge-fund-204127686.html " ...For the population as a whole, American business has done wonderfully. And the net result of hiring professional management, is a huge minus....
by JoMoney
Sat Apr 30, 2016 6:38 pm
Forum: Investing - Theory, News & General
Topic: Efficient frontier? "Indexing" and valuation distortions
Replies: 32
Views: 1705

Re: Efficient frontier? "Indexing" and valuation distortions

... There's a faint point that can be made specifically against the popularity of S&P 500 indexing, which might elevate the prices of the stocks in that index. A poster in this forum recalls Gus Sauter as saying that front-running boosts the S&P index by 0.25%. If you find this seriously di...
by JoMoney
Sat Apr 30, 2016 5:45 pm
Forum: Investing - Theory, News & General
Topic: Efficient frontier? "Indexing" and valuation distortions
Replies: 32
Views: 1705

Re: Efficient frontier? "Indexing" and valuation distortions

These continually rehashed complaints about passive market-cap weighted investing are ridiculous. The market aggregate will be represented by the market cap of all the companies regardless of the styles and methodology that individual investors choose to use to weight their holdings. If an individua...
by JoMoney
Sat Apr 30, 2016 4:19 pm
Forum: Investing - Theory, News & General
Topic: Berkshire Hathaway, Annual Meeting Live Streaming Today
Replies: 23
Views: 1516

Re: Berkshire Hathaway, Annual Meeting Live Streaming Today

Not as much detail as the live Q&A, but there is a transcript "live blog" here: http://blogs.marketwatch.com/thetell/2016/04/30/live-blog-warren-buffett-at-berkshire-hathaway-annual-meeting/ Thanks! It will have to do if they don't replay it. I'm watching what is left, but I also see ...
by JoMoney
Sat Apr 30, 2016 4:03 pm
Forum: Investing - Theory, News & General
Topic: Sound advice from Warren Buffett
Replies: 15
Views: 2468

Re: Sound advice from Warren Buffett

Here's a link to a story with one of the quotes: http://www.usatoday.com/story/money/mar ... /83743908/
Wise advice that most Bogleheads are familiar with :sharebeer
by JoMoney
Sat Apr 30, 2016 3:45 pm
Forum: Investing - Theory, News & General
Topic: Berkshire Hathaway, Annual Meeting Live Streaming Today
Replies: 23
Views: 1516

Re: Berkshire Hathaway, Annual Meeting Live Streaming Today

Not as much detail as the live Q&A, but there is a transcript "live blog" here:
http://blogs.marketwatch.com/thetell/20 ... l-meeting/
by JoMoney
Thu Apr 28, 2016 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Question: Mega Cap or S&P 500?
Replies: 8
Views: 685

Re: Question: Mega Cap or S&P 500?

If I really wanted a focus on Large-cap stocks, I wouldn't use either. There are options available that better emphasize them. If I was aiming for that (I'm not, but if I was), I'd want stocks larger than the median market-cap of the market (somewhere around > $50 Billion). Adding most anything belo...
by JoMoney
Wed Apr 27, 2016 1:59 pm
Forum: Investing - Theory, News & General
Topic: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade
Replies: 101
Views: 6817

Re: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade

What do you mean by of the "overall market" being expensive? Here’s an example. “Value company” Book value = $4 Price = $1 Book/price = $4 “Growth company” Book value = $4 Price = $2 Book/price = $2 So both companies have same book value, but the value company is half the price of the gro...
by JoMoney
Wed Apr 27, 2016 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: if you HAD to pick 2 actively managed funds???
Replies: 45
Views: 2798

Re: if you HAD to pick 2 actively managed funds???

I would go back to picking individual stocks myself. ... but for the sake of the exercise, I would look for something index like, well diversified, with low fees, that has a long track record of style consistency and a stated style objective for the stocks they purchase preferably in the name of the...
by JoMoney
Wed Apr 27, 2016 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Why have a formal budget?
Replies: 82
Views: 4835

Re: Why have a formal budget?

Sorry, didn't read all the other posts beyond OP... I like a formal written budget because it gives me a target. A stated goal with some boundaries I'm trying to stay within. If I go outside the budget I have to acknowledge it, and recognize doing so is taking me off course from my goal and I need t...
by JoMoney
Wed Apr 27, 2016 12:33 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Manager Changes
Replies: 9
Views: 874

Re: Vanguard Manager Changes

... For index funds I am concerned with index turnover more than manager turnover. For example Vanguard small cap value: S&P SmallCap 600 Value Index (formerly known as the S&P SmallCap 600/Barra Value Index) through May 16, 2003; MSCI US Small Cap Value Index through April 16, 2013; CRSP U...
by JoMoney
Tue Apr 26, 2016 3:04 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 41
Views: 1908

Re: Linux/Windows Boot Problem

Are you trying to boot from a USB 3.0 port? (the plug will likely be blue, instead of black)
I don't know a fix, but it's a common problem I've seen posted elsewhere when trying to boot off of USB 3.0
by JoMoney
Mon Apr 25, 2016 2:30 am
Forum: Investing - Theory, News & General
Topic: Real estate crowd funding
Replies: 18
Views: 1454

Re: Real estate crowd funding

... I thought the OP posted an interesting question about whether people have invested in these types of products. I'm confused :? Have you invested in these or just felt the need to poo poo them? Sorry you were confused, but I thought I was pretty clear that I had not, nor would consider investing...
by JoMoney
Sat Apr 23, 2016 6:38 pm
Forum: Investing - Theory, News & General
Topic: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade
Replies: 101
Views: 6817

Re: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade

...its things people know for sure that are, in fact, completely false... Or worse, it's " not even wrong ", if it were something that could be shown as completely false it would be easy to dismiss without arguments about whether there's really a signal or just random occurrence of patter...
by JoMoney
Sat Apr 23, 2016 4:03 pm
Forum: Investing - Theory, News & General
Topic: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade
Replies: 101
Views: 6817

Re: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade

Might note the type of investors in a broad market cap-weighted fund have no reason to abandon ship. They're getting the market return, which should have been their expectation going in. They aren't reliant on a hypothesized "premium" story based on the Efficient Market Hypothesis and what...
by JoMoney
Sat Apr 23, 2016 3:55 pm
Forum: Investing - Theory, News & General
Topic: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade
Replies: 101
Views: 6817

Re: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade

Past 15 years if you compare the returns for a real world small-value vs small-growth index fund, there wasn't much of any "premium". Small-cap stocks in general did a lot better then large though (as long as you don't count mid-caps as being larger than small-caps). In the late 1990's-200...
by JoMoney
Sat Apr 23, 2016 3:31 pm
Forum: Investing - Theory, News & General
Topic: Real estate crowd funding
Replies: 18
Views: 1454

Re: Real estate crowd funding

I haven't, and wouldn't... There's been multiple threads/discussions on this board for similar web sites in the past. As far as I can tell, there's nothing new about these things except the way they're being marketed. They're just non-traded REITs. The only "advantage" I hear people talk a...
by JoMoney
Sat Apr 23, 2016 3:14 pm
Forum: Investing - Theory, News & General
Topic: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade
Replies: 101
Views: 6817

Re: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade

Yup... and Jack Bogle practically called it 10 years ago in his " Turn on a Paradigm? " June 27, 2006 op-ed in the Wall Street Journal. ... Eugene Fama and Kenneth French have suggested that higher returns can be generated by indexed portfolios of stocks with small capitalizations and low ...
by JoMoney
Fri Apr 22, 2016 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Income AMount
Replies: 10
Views: 1584

Re: Retirement Income AMount

I don't think I could, too humid for me to be comfortable.
Median household income in Florida is around $47k a year before taxes, obviously people get by on that, I don't know how comfortable they are.
by JoMoney
Fri Apr 22, 2016 5:48 pm
Forum: Investing - Theory, News & General
Topic: VBIAX or VSMGX: Is international still mandatory?
Replies: 7
Views: 747

Re: VBIAX or VSMGX: Is international still mandatory?

I'm a big fan of Warren Buffett. I'm following the simple portfolio advice he's repeatedly suggested. Some people get hung up on the 'international', but I seriously doubt that's the allocation decision that will make much difference. It's the fixed income to equities allocation that most people sho...
by JoMoney
Fri Apr 22, 2016 5:11 pm
Forum: Investing - Theory, News & General
Topic: Do you think this is a bad time to enter the market? With the dow at 18,000
Replies: 89
Views: 7209

Re: Do you think this is a bad time to enter the market? With the dow at 18,000

"I have no idea what the stock market's going to do tomorrow or next week or next month or next year," heck even 10 years from now I wouldn't want to hazard a guess without having a huge range / margin of error. But I do expect that 10 years from now we'll be reaching levels much higher t...
by JoMoney
Fri Apr 22, 2016 4:32 pm
Forum: Investing - Theory, News & General
Topic: Did TIPS Really work?
Replies: 41
Views: 3217

Re: Did TIPS Really work?

Looks to me that the market expected inflation to be higher than it was.
by JoMoney
Fri Apr 22, 2016 3:42 pm
Forum: Investing - Theory, News & General
Topic: "The Index Card"
Replies: 19
Views: 2766

Re: "The Index Card"

Thanks for the info and the link to the article! I do have a question which I realize is uninformed/uneducated (which I am trying to remedy!) I do wonder though, how this can be: "One of the more pathetic studies shows that the stocks that people sold outperformed the stocks that people bought...
by JoMoney
Thu Apr 21, 2016 3:03 pm
Forum: Investing - Theory, News & General
Topic: Rick Edelman Advice....Good?
Replies: 22
Views: 3038

Re: Rick Edelman Advice....Good?

... He also made a statement about Vanguard's S&P index 500 fund having hidden trading fees. That would be difficult since the fund tracked quite closely to the index. ... This isn't wrong, but it's not unique to any particular fund either, all mutual funds incur additional expenses (brokerage ...
by JoMoney
Wed Apr 20, 2016 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: [Safety of investing with Vanguard - Change to brokerage accounts?]
Replies: 5
Views: 625

Re: VANGUARD ISSUE

So am i to assume that it really makes no difference to switch to a brokerage account? With regard to owning your shares directly, or having a broker hold them for you in street name, I don't see much of any advantage/disadvantage when it comes to Vanguard mutual funds. If they were shares of stock...
by JoMoney
Wed Apr 20, 2016 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: [Safety of investing with Vanguard - Change to brokerage accounts?]
Replies: 5
Views: 625

Re: VANGUARD ISSUE

You don't have SIPC coverage on a mutual fund account held directly at Vanguard because the mutual fund is held directly in your name, not in "street name" held by a brokerage for your benefit. There is no middle-man to do anything dodgy with your fund, it's just you owning the fund direct...
by JoMoney
Tue Apr 19, 2016 3:09 pm
Forum: Investing - Theory, News & General
Topic: Risk Adj Return: Single Stock Vs. Portfolio
Replies: 21
Views: 979

Re: Risk Adj Return: Single Stock Vs. Portfolio

The question is: would a portfolio of comparable stocks always have a risk-adjusted performance that is better than a single stock in the portfolio? Consider Walmart (WMT) and the Vanguard Dividend Appreciation ETF (VIG). A friend of mine recently explained how he bought some positions with WMT bec...
by JoMoney
Tue Apr 19, 2016 2:47 pm
Forum: Investing - Theory, News & General
Topic: If more and more people have similar portfolios as you, does it help, hurt, or have no change in making more money?
Replies: 4
Views: 450

Re: If more and more people have similar portfolios as you, does it help, hurt, or have no change in making more money?

It depends... are you measuring at a period where "more and more" people are trying to get into that asset/portfolio and the price is rising because of the demand? Are you measuring at a period where the tides have turned where "more and more" people who already own that portfoli...
by JoMoney
Mon Apr 18, 2016 3:44 am
Forum: Investing - Theory, News & General
Topic: Rick Edelman Advice....Good?
Replies: 22
Views: 3038

Re: Rick Edelman Advice....Good?

Not only does Ric Edelman advise 100% stocks, he advises people to get a home mortgage and invest that money.. so effectively he advises more than 100% stocks in some cases. Historically speaking, that was probably good advice over many time periods, and maybe a disaster over a few specific periods....
by JoMoney
Sun Apr 17, 2016 3:12 pm
Forum: Investing - Theory, News & General
Topic: The Problem with Raw Returns in a Backtest
Replies: 19
Views: 1962

Re: The Problem with Raw Returns in a Backtest

... It is becoming clearer to me that the hardest thing for investors to do is to stick with a long-term asset allocation. Patience is a key ingredient for investment success. Choose an investment strategy you can stick with. Robert :thumbsup I think if you include at least a modest amount of diver...
by JoMoney
Fri Apr 15, 2016 8:15 pm
Forum: Investing - Theory, News & General
Topic: Whats with the hedge fund hating?
Replies: 60
Views: 4210

Re: Whats with the hedge fund hating?

...20% annual returns would have to come with lots of risk. Yeah, and at least with just buying a broad market average like an index fund, you know what you're getting is what the broad market is determining is an "average" price/risk. Hedge funds on the other hand, don't necessarily have...
by JoMoney
Fri Apr 15, 2016 8:03 pm
Forum: Investing - Theory, News & General
Topic: Whats with the hedge fund hating?
Replies: 60
Views: 4210

Re: Whats with the hedge fund hating?

... Is that annually or overall? Those were returns for those specific years starting on Jan.1 and ending Dec.31 of that particular year. The long-term average has to account years where there are losses as well, as do hedge funds and other active funds, among the problems with many managed funds t...
by JoMoney
Fri Apr 15, 2016 7:53 pm
Forum: Investing - Theory, News & General
Topic: Whats with the hedge fund hating?
Replies: 60
Views: 4210

Re: Whats with the hedge fund hating?

... I want to know how to print money because I can never cross the 20% mark. FWIW, a simple S&P500 index fund would have had eleven 20%+ years in the past thirty years. 1985 +32.2% 1989 +31.5% 1991 +30.5% 1995 +37.6% 1996 +23.0% 1997 +33.4% 1998 +28.6% 1999 +21.0% 2003 +28.7% 2009 +26.5% 2013 ...
by JoMoney
Fri Apr 15, 2016 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: Buy a house or Buy Stocks?
Replies: 8
Views: 1574

Re: Buy a house or Buy Stocks?

I'm not a professional in real estate, nor in trading stocks. Unless you are, I would stay away from both. I think buying and holding (not trading) a well diversified selection of stocks, and keeping your expenses low, like you can do with a broad market index fund, is a good investment option for m...
by JoMoney
Fri Apr 15, 2016 7:16 pm
Forum: Investing - Theory, News & General
Topic: Whats with the hedge fund hating?
Replies: 60
Views: 4210

Re: Whats with the hedge fund hating?

It's nothing personal... It's just about helping people make a better investment decision. The mass of investment "professionals" are not going to be able to beat the averages that they are themselves a part of. There may be some that do, but the average will be average, and worse than tha...
by JoMoney
Fri Apr 15, 2016 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: SWAN: Using absolute dollar amount instead of percentage to manage risk
Replies: 27
Views: 2221

Re: SWAN: Using absolute dollar amount instead of percentage to manage risk

I'm nowhere near withdrawal stage. I do something similar, except I have a fixed dollar amount in bonds/fixed income. I prefer the idea of knowing that I have x amount of living expenses covered for y period of time, and take more risks with the rest.
by JoMoney
Fri Apr 15, 2016 2:10 am
Forum: Investing - Help with Personal Investments
Topic: International
Replies: 34
Views: 2134

Re: International

WSJ is reporting the Russell 2000 trailing earnings at nothing (actually negative).... What's the growth rate of 0 to something? :shock:
Image
by JoMoney
Thu Apr 14, 2016 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: International
Replies: 34
Views: 2134

Re: International

... That R squared is really too low to be useful. But I get what you're saying. I still stand by my statement, since Vanguard shows it as earnings growth, not forward earnings growth. By every measure of earnings growth besides guesses, it's inaccurate. I agree about it not being very useful, but ...
by JoMoney
Thu Apr 14, 2016 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: International
Replies: 34
Views: 2134

Re: International

... Vanguard's earnings growth rate measure is WILDLY inaccurate. It says the SP 500 has an earnings growth rate of 8% when earnings have been falling every quarter for the past year. I'm guessing they use forward earnings, which aren't accurate. So going off Vanguard's earnings growth rate is a pr...
by JoMoney
Thu Apr 14, 2016 4:25 am
Forum: Investing - Help with Personal Investments
Topic: Target Date or S&P 500, Total Int, and Total Bond?
Replies: 6
Views: 754

Re: Target Date or S&P 500, Total Int, and Total Bond?

Personally I own an S&P500 fund and happily call it "good enough"... FWIW, I'll point out that you're already getting a healthy dose of "mid-caps" in the S&P500 as well as in a Small-Cap index. I just checked the top 50 holdings Vanguard has listed in their Mid-Cap Index ...
by JoMoney
Tue Apr 12, 2016 3:35 pm
Forum: Investing - Theory, News & General
Topic: Are Dividends a Substitute for Value?
Replies: 20
Views: 1260

Re: Are Dividends a Substitute for Value?

Price divided by just about anything is going to have some "value factor" characteristics. Dividend yield is just measuring price over dividends, the academics who study this stuff determined that there were better metrics (like price / book ) that better emphasized the "value factor&...
by JoMoney
Tue Apr 12, 2016 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: Tilt or no tilt (mid 40s, $4-5M)
Replies: 56
Views: 4698

Re: "Don't buy the needle. Buy the haystack."

...the underperformance could last for a very long time. This is what we called tracking error. A person has to accept this if they choose to tilt and decide for themselves whether it is worth the effort. I see people post this all the time, I think it's silly. Tracking error is measured against an...

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