Search found 3600 matches

by JoMoney
Thu Sep 29, 2016 3:52 pm
Forum: Investing - Theory, News & General
Topic: why not just buy BRK
Replies: 9
Views: 977

Re: why not just buy BRK

Personally, I'm not willing to just buy BRK, but I will follow Buffett's advice ... Just pick a broad index like the S&P 500. Don't put your money in all at once; do it over a period of time. I recommend John Bogle's books -- any investor in funds should read them. They have all you need to know...
by JoMoney
Thu Sep 29, 2016 3:21 pm
Forum: Investing - Theory, News & General
Topic: News Article on Boglehead Event 2016
Replies: 1
Views: 200

News Article on Boglehead Event 2016

It looks like news articles from the Boglehead event are starting to come out, thought others might be interested:
https://www.thestreet.com/story/1377257 ... -rich.html
by JoMoney
Tue Sep 27, 2016 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: How it really feels to have investments during a bear market?
Replies: 68
Views: 4560

Re: How it really feels to have investments during a bear market?

I remember wishing I had more money to invest during some of the big drops... and then being amazed at how much further it continued to fall. Day after day of huge volatile swings, but for the most part I 'stayed the course' and continued my regular investments in what is pretty much an all stock po...
by JoMoney
Mon Sep 26, 2016 3:32 pm
Forum: Investing - Theory, News & General
Topic: Merriman knocks TSM
Replies: 34
Views: 4208

Re: Merriman knocks TSM

Looks like Taylor has been responding to posts about Merriman suggestions for a long time

(2000) http://socialize.morningstar.com/NewSoc ... ID=1099713

(2005) http://socialize.morningstar.com/NewSoc ... ID=1949238
by JoMoney
Mon Sep 26, 2016 3:44 am
Forum: Investing - Theory, News & General
Topic: Warren Buffett recommends putting 90% in S&P500 index fund, 10% in Bond index
Replies: 51
Views: 7026

Re: Warren Buffett recommends putting 90% in S&P500 index fund, 10% in Bond index

I can't believe the controversy this simple portfolio stirs up on this board. With all the wacky tilting strategies people propose on here, I would think this would be pretty plain vanilla... There's lots of people around here who want to tell you why their advice for what you should do is somehow b...
by JoMoney
Mon Sep 26, 2016 2:23 am
Forum: Investing - Theory, News & General
Topic: Warren Buffett recommends putting 90% in S&P500 index fund, 10% in Bond index
Replies: 51
Views: 7026

Re: Warren Buffett recommends putting 90% in S&P500 index fund, 10% in Bond index

Obviously that 90% will be put in the Vanguard 500. Yet what short-government bond fund would be appropriate for the other 10%? Is it the Vanguard Short-Term Government Bond Index Fund Admiral Shares (VSBSX)??? Personally, I'm using series I Savings Bonds, bought directly from 'Treasury Direct', co...
by JoMoney
Sun Sep 25, 2016 4:08 pm
Forum: Investing - Theory, News & General
Topic: Merriman knocks TSM
Replies: 34
Views: 4208

Re: Merriman knocks TSM

... I also believe that it is very difficult to write a book and get it published if all you have to say is buy a couple of low cost index funds and go away. You will also have no credibility if all you have to offer is what anyone could have thought of. (The irony, of course, is that thinking that...
by JoMoney
Sun Sep 25, 2016 3:46 pm
Forum: Investing - Theory, News & General
Topic: Financial Times: Vanguard credit line
Replies: 3
Views: 808

Re: Financial Times: Vanguard credit line

The impact of managers trying to play games with the portfolio during a liquidity crunch is something that bothers me about mutual funds. I would hope, that index mutual funds are less at risk from this, as I would hope they're liquidating the portfolio proportionately regardless of market offers, s...
by JoMoney
Sun Sep 25, 2016 3:30 pm
Forum: Investing - Theory, News & General
Topic: Expanded Morningstar Instant X-Ray Available for All
Replies: 3
Views: 950

Re: Expanded Morningstar Instant X-Ray Available for All

How is it different than just going directly to Morningsars X-Ray tool, that's already available to the public?
http://portfolio.morningstar.com/Rtport ... Entry.aspx
by JoMoney
Sun Sep 25, 2016 3:23 pm
Forum: Investing - Theory, News & General
Topic: Arnott and Asness Square Off on Factor Investing
Replies: 17
Views: 1527

Re: Arnott and Asness Square Off on Factor Investing

You can't diversify away 'market beta risk' by owning more stocks, but you can diversify it or hedge it away with cash/bonds so you don't have the risk at all. You should be able to do the same for other "risk factors", except you do it by owning stocks on the other side, hedging it away c...
by JoMoney
Sat Sep 24, 2016 4:13 pm
Forum: Investing - Theory, News & General
Topic: Arnott and Asness Square Off on Factor Investing
Replies: 17
Views: 1527

Re: Arnott and Asness Square Off on Factor Investing

As always I can never tell if this argument is made facetiously or not, but in case anybody intends to say it straight or doesn't know, by construction the total market only has the market factor because it is untilted away from the total market. It is defined that way, to have zero exposure to oth...
by JoMoney
Fri Sep 23, 2016 7:28 pm
Forum: Investing - Theory, News & General
Topic: How can markets be efficient if home prices are higher in the spring?
Replies: 50
Views: 1767

Re: How can markets be efficient if home prices are higher in the spring?

If you're correct in that "markets are efficient", then it's simply a trade off of risk regardless if you're able to recognize/measure the risk. If markets aren't so efficient, and professionals actually know something, then playing dumb and ignoring the information may cost you. I don't b...
by JoMoney
Fri Sep 23, 2016 6:47 pm
Forum: Investing - Theory, News & General
Topic: How can markets be efficient if home prices are higher in the spring?
Replies: 50
Views: 1767

Re: How can markets be efficient if home prices are higher in the spring?

Here's a tip: Market's aren't efficient. People that are professionals in real estate have long recognized the seasonality of home sales and do take advantage of it... but there are "limits to arbitrage", and that doesn't mean making money in in-efficient markets is easy or without risk......
by JoMoney
Fri Sep 23, 2016 6:21 pm
Forum: Investing - Theory, News & General
Topic: premium/discount
Replies: 2
Views: 248

Re: premium/discount

It's not clear to me the context of what you're talking about.... but I'll take a wild guess and assume you're talking about buying an ETF, which is a mutual fund sold intra-day on the stock exchanges. Traditional mutual funds are valued at the end of the the day based on the closing price of assets...
by JoMoney
Thu Sep 22, 2016 4:18 pm
Forum: Investing - Theory, News & General
Topic: Morgan Stanley explains why the S&P500 wins
Replies: 13
Views: 2136

Re: Morgan Stanley explains why the S&P500 wins

FWIW, there are other (much contested) theories about an S&P 500 effect that suggests companies in the index have permanent improvements in price and earnings qualities http://papers.ssrn.com/sol3/papers.cfm?abstract_id=329543 ... like (most) other studies that have analyzed S&P Index additi...
by JoMoney
Thu Sep 22, 2016 3:28 pm
Forum: Investing - Theory, News & General
Topic: Morgan Stanley explains why the S&P500 wins
Replies: 13
Views: 2136

Re: Morgan Stanley explains why the S&P500 wins

I like the reasoning Ben Carson gives over here: ...Buying during a bear market is probably one of the most difficult things an investor can do, but staying invested as stocks rise may be a close second. There are constant temptations to “take money off the table” or “de-risk your holdings” after a ...
by JoMoney
Wed Sep 21, 2016 3:20 am
Forum: Investing - Help with Personal Investments
Topic: Strategies to reduce illogical worries?
Replies: 36
Views: 2504

Re: Strategies to reduce illogical worries?

Hi all, So I have a problem when I worry about my investments. Wondering if anybody has the same issue. As for stocks, I worry that the number of public companies is decreasing and can't help but wonder if stocks are slowly going extinct and something like crowdfunding will replace them. More and m...
by JoMoney
Wed Sep 21, 2016 3:13 am
Forum: Investing - Help with Personal Investments
Topic: Strategies to reduce illogical worries?
Replies: 36
Views: 2504

Re: Strategies to reduce illogical worries?

I'm fairly sure companies are removed due to negative earnings, but if somebody is an expert feel free to chime in. " Companies that substantially violate one or more of the addition criteria " (which includes earnings criteria) is grounds for deletion from the index, but " S&P D...
by JoMoney
Wed Sep 21, 2016 2:49 am
Forum: Investing - Theory, News & General
Topic: Evolution of the S&P 500 Composition
Replies: 6
Views: 759

Re: Evolution of the S&P 500 Composition

Every investable index, including 'Total Market' indices, have selection criteria rules and a committee that has to be the arbiter when the rules aren't always clear (which happens quite often when determining whether a stock should count as a U.S. market or International). It is interesting to see ...
by JoMoney
Mon Sep 19, 2016 4:16 pm
Forum: Investing - Theory, News & General
Topic: Morningstar and P/E TTM: what a wonderful world!
Replies: 12
Views: 1181

Re: Morningstar and P/E TTM: what a wonderful world!

Most mutual funds use a weighted average of the individual stock P/E in their portfolio, and they treat index mutual funds the same way they do their other portfolios. But some of them do different things (like throw out, or discount the weighting) on extreme P/E's like negative earnings or P/E over...
by JoMoney
Mon Sep 19, 2016 4:09 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund vs. Individual Bonds
Replies: 20
Views: 1634

Re: Bond Fund vs. Individual Bonds

As I understand it (I think), if you use multiple bond funds of different duration, and/or cash and a bond fund, and manage your portfolios duration so as to keep it at the same duration as a ladder of maturing individual bonds, there isn't really any difference and you can achieve the same result u...
by JoMoney
Mon Sep 19, 2016 3:18 pm
Forum: Investing - Theory, News & General
Topic: Morningstar and P/E TTM: what a wonderful world!
Replies: 12
Views: 1181

Re: Morningstar and P/E TTM: what a wonderful world!

FWIW, we've had several other threads where it's been pointed out that mutual funds, and indexes use different methodologies to calculate the fund vs the indexes P/E ratio. You can find the historic P/E ratio of Vanguard's index funds by going through their historic annual reports in the SEC databas...
by JoMoney
Mon Sep 19, 2016 3:00 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Premium
Replies: 11
Views: 1535

Re: Small Cap Premium

With regard to the small growth "black hole" "junk" stocks, I find the results of this paper very interesting http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2394711 Showing that constituency requirements, particularly with regard to liquidity in real world mutual funds and in...
by JoMoney
Sat Sep 17, 2016 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Warren Buffett Loves The S&P 500?
Replies: 14
Views: 2034

Re: Warren Buffett Loves The S&P 500?

He might have meant: Avoid small-caps and international stocks. He might have meant: I don't think small-caps and international stocks matter, so stick to the simple and familiar. He might have meant: I've just never really thought about small-caps and international stocks. There's no point in gues...
by JoMoney
Sat Sep 17, 2016 4:01 pm
Forum: Investing - Theory, News & General
Topic: Factor Premiums as Statistically Significant As Equity Premiums
Replies: 10
Views: 1195

Re: Factor Premiums as Statistically Significant As Equity Premiums

It's something Larry Swedroe has commented about, but it probably depends specifically on which "factor" you're talking about. One of the many things to keep in mind with these things though, is people go looking in the historical data for things that show "statistical significance&qu...
by JoMoney
Sat Sep 17, 2016 3:46 pm
Forum: Investing - Theory, News & General
Topic: Mistakes benchmarking to the S&P500
Replies: 7
Views: 652

Re: Mistakes benchmarking to the S&P500

It probably isn't the best benchmark to be using if you have a portfolio made up of lots things other than an assortment of leading large-cap companies. But I think it is a pretty good strategy to intentionally index to it and capture a broad average of the markets return with an average amount of r...
by JoMoney
Sat Sep 17, 2016 3:44 am
Forum: Investing - Help with Personal Investments
Topic: Warren Buffett Loves The S&P 500?
Replies: 14
Views: 2034

Re: Warren Buffett Loves The S&P 500?

I think you'll find several threads on here that have speculated about it before, including some threads you started https://www.bogleheads.org/forum/viewtopic.php?f=1&t=197482 I'd say he suggests it because it's great advice for most people to follow as an investment strategy, and falls right i...
by JoMoney
Fri Sep 16, 2016 4:35 pm
Forum: Investing - Theory, News & General
Topic: "Factor investing"
Replies: 192
Views: 12671

Re: "Factor investing"

There's at least two different "stories" the proponents like to argue with regard for why they "expect" higher returns from factors. Whether you believe it's a measurement of unique risk, or it's taking advantage of a behavioral anomaly, has starkly different implications though....
by JoMoney
Fri Sep 16, 2016 3:53 pm
Forum: Investing - Theory, News & General
Topic: Nisiprius Investments Unveils New MDF Factor-Based Fund
Replies: 44
Views: 2983

Re: Nisiprius Investments Unveils New MDF Factor-Based Fund

The risk story for this factor has been well known and publicized and shows no signs of being arbitraged away despite well known counter parties with different "risk preferences". Every time I view the financial news I see the likes of Peter Schiff, Marc Faber, and other strong advocates f...
by JoMoney
Fri Sep 16, 2016 2:20 am
Forum: Investing - Theory, News & General
Topic: Small Cap Premium
Replies: 11
Views: 1535

Re: Small Cap Premium

Interesting article, worth a read. I like to point to the performance of the S&P 600 though. It vastly outperformed the broad market. But even the S&P Small-Cap 600 was outperformed by the S&P Mid-Cap 400 over the course of it's existence which pokes some holes in the idea that there's ...
by JoMoney
Tue Sep 13, 2016 4:08 pm
Forum: Investing - Theory, News & General
Topic: "Factor investing"
Replies: 192
Views: 12671

Re: "Factor investing"

...One reason that indexing works is that the bad "lottery stocks" that Larry Swedroe talks about don't seem to show up in the indexes. We have heard that small growth is the "black hole" of investing but it isn't evident when you compare the Vanguard Small Value and Small Growt...
by JoMoney
Tue Sep 13, 2016 3:46 pm
Forum: Investing - Theory, News & General
Topic: Are Index Funds a Lousy Bet Right Now?
Replies: 28
Views: 3503

Re: Are Index Funds a Lousy Bet Right Now?

There are periods where large-caps outperform small-caps, and periods where returns are influenced more by momentum characteristics over mean-reversion (and vice versa). Relative to a strategy that involves more active trading and stock picking, a market cap weighted fund will have tendencies more l...
by JoMoney
Tue Sep 13, 2016 3:23 pm
Forum: Investing - Theory, News & General
Topic: "Factor investing"
Replies: 192
Views: 12671

Re: "Factor investing"

CAPM is wrong, the 3 factor model is wrong, the 4 factor model is wrong, the 5 factor model is wrong... and whatever the next iteration of models trying to plug the holes in the Efficient Market Hypothesis will likely be wrong to. The idea that the models are supposed to be measurements of "ris...
by JoMoney
Tue Sep 13, 2016 5:56 am
Forum: Investing - Help with Personal Investments
Topic: Is A Two-Fund Portfolio All You Really Need?
Replies: 44
Views: 5233

Re: Is A Two-Fund Portfolio All You Really Need?

The hard thing, would be doing better. There's a lot of people who know quite a bit about investing and manage to fall short of such a strategy. The art of investment has one characteristic that is not generally appreciated. A creditable, if unspectacular, result can be achieved by the lay investor ...
by JoMoney
Mon Sep 12, 2016 2:37 pm
Forum: Investing - Theory, News & General
Topic: Two Different Worlds
Replies: 12
Views: 1674

Re: Two Different Worlds

Divide the last 44 years in to two halves

Code: Select all

12/30/1971 - 12/31/1993     5.449%
12/29/1993 - 12/31/2015     6.642%

:confused
by JoMoney
Sat Sep 10, 2016 9:03 pm
Forum: Investing - Theory, News & General
Topic: "Factor investing"
Replies: 192
Views: 12671

Re: "Factor investing"

... 3. I haven't done a scientific study but looking at many of these smart beta funds track records they aren't looking too good. I would be very surprised if any where near half have beaten low cost index funds in similar categories. What do you count under the smart beta category? Do cap weighte...
by JoMoney
Sat Sep 10, 2016 7:32 pm
Forum: Investing - Theory, News & General
Topic: "Factor investing"
Replies: 192
Views: 12671

Re: "Factor investing"

I think the reference to "buy many haystacks rather than just one haystack" really summarizes the distinction between the TSMers and the Tilters. Dave I think that's the 'story' tilters want to use to justify the data mining and performance chasing. The reality is, people are still buying...
by JoMoney
Fri Sep 09, 2016 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Company clawing back retirement contributions
Replies: 59
Views: 6704

Re: Company clawing back retirement contributions

How long ago did this $2,500 mistake occur ? I understand them wanting correct that, but expecting $1,500 interest on their mistake seems ridiculous to me. If your investments had lost $1,500 would they have discounted the amount to only want back $1,000 of their $2,500 mistake?
by JoMoney
Thu Sep 08, 2016 3:43 pm
Forum: Personal Consumer Issues
Topic: Archiving Videos
Replies: 22
Views: 1203

Re: Archiving Videos

I would use some combination of 'cloud' storage, and a usb thumb drive. Flash memory has a pretty good lifespan if it doesn't go through too many cycles of being deleted and re-written.
by JoMoney
Thu Sep 08, 2016 6:33 am
Forum: Investing - Theory, News & General
Topic: S&P 500 index and funds difference
Replies: 4
Views: 569

Re: S&P 500 index and funds difference

Over the past decade +, VFIAX only under-performed the index by .01% annualized, despite the .05% Expense Ratio.
The institutional class fund VIIIX , which only has a .02% ER, actually beat the index by .02% annualized.
(Morningstar Growth Chart)
by JoMoney
Thu Sep 08, 2016 6:02 am
Forum: Personal Finance (Not Investing)
Topic: Morningstar's sustainability ratings
Replies: 3
Views: 343

Re: Morningstar's sustainability ratings

Longtermgrowth wrote:... maybe finding a low sustainability rated fund will give better returns? :twisted:

WSJ: The Siren Call of ‘Sin Stocks’

VICEX (Morningstar) ... expense ratio is pretty hefty though, especially for a fund with less than 50 stocks.
by JoMoney
Thu Sep 08, 2016 5:04 am
Forum: Investing - Theory, News & General
Topic: Do you think about volatility drag on your portfolio?
Replies: 51
Views: 2536

Re: Do you think about volatility drag on your portfolio?

Kolea, As I expect you've read, TSM is really only exposed to one risk factor, beta. Do you still believe it's maximally diverse? What matters is the behavior of the portfolio as a whole, and the potential additional benefit of an asset class to a portfolio depends on its expected returns, volatili...
by JoMoney
Thu Sep 08, 2016 3:59 am
Forum: Investing - Theory, News & General
Topic: How accurate is Shiller's S&P 500 data before 1957?
Replies: 12
Views: 828

Re: How accurate is Shiller's S&P 500 data before 1957?

... Do you know if Shiller's S&P constructed from 1871-1956 was price weighted (like the Dow) or cap weighted? Shiller's data uses the S&P data from 1926 forward, which is cap weighted, but was not "free float adjusted" prior to about 2004 http://www.etf.com/publications/journalof...
by JoMoney
Thu Sep 08, 2016 3:56 am
Forum: Investing - Theory, News & General
Topic: How accurate is Shiller's S&P 500 data before 1957?
Replies: 12
Views: 828

Re: How accurate is Shiller's S&P 500 data before 1957?

You might be interested in looking over the info about the history of CRSP's Stock Market research database http://crsp.com/files/Journal%20of%20Business%20-%20Rates%20of%20ROI%20in%20Common%20Stocks.pdf That was re-created using historical info from every stock listed on on the New York Stock Excha...
by JoMoney
Thu Sep 08, 2016 2:28 am
Forum: Investing - Theory, News & General
Topic: How accurate is Shiller's S&P 500 data before 1957?
Replies: 12
Views: 828

Re: How accurate is Shiller's S&P 500 data before 1957?

Prior to 1957 the S&P composite index consisted of 90 stocks tracked daily. Prior to to 1926 S&P had a 233 stock index but it was only tracked weekly and only goes back to 1923. Shiller says that "Dividend and earnings data before 1926 are from Cowles and associates " Which is all ...
by JoMoney
Tue Sep 06, 2016 2:31 pm
Forum: Investing - Theory, News & General
Topic: Vanguard brokerage will not convert mutual fund to ETF
Replies: 57
Views: 4070

Re: Vanguard brokerage will not convert mutual fund to ETF

livesoft wrote:I see that the FAQ about conversion at vanguard.com does list 4 bond funds that cannot be converted, but does not mention all the funds that cannot be converted. Chalk that up to Vanguard's low costs: They don't keep the web site up-to-date.

I think this is likely the case.
by JoMoney
Tue Sep 06, 2016 2:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard brokerage will not convert mutual fund to ETF
Replies: 57
Views: 4070

Re: Vanguard brokerage will not convert mutual fund to ETF

https://investor.vanguard.com/etf/faqs Can I convert my conventional Vanguard mutual fund shares to Vanguard ETF Shares? Yes, most funds that offer ETF Shares will allow you to convert from conventional shares of the same fund to ETF Shares. (Four of our bond ETFs—Total Bond Market, Short-Term Bond...
by JoMoney
Mon Sep 05, 2016 4:07 pm
Forum: Personal Consumer Issues
Topic: "Pillow Top" only (part of mattress) ?
Replies: 6
Views: 564

Re: "Pillow Top" only (part of mattress) ?

I would have suggested a down mattress pad, but you nixed it right away.
Maybe having a couple pads of different types mixed would work, like a down pad on top of a foam pad.
by JoMoney
Mon Sep 05, 2016 3:44 pm
Forum: Investing - Theory, News & General
Topic: If Fed goes Negative, do Treasuries lose their Initial cost of investment??
Replies: 16
Views: 1861

Re: If Fed goes Negative, do Treasuries lose their Initial cost of investment??

It would be interesting to see what happens with mortgage rates. Will the bank pay me to buy a house :confused :D There was a time in the 1980's when people loved the idea of buying on credit, layaway, and anything where they could lock in the price of something today as it would like be higher from...
by JoMoney
Mon Sep 05, 2016 3:20 pm
Forum: Personal Consumer Issues
Topic: Streaming alternatives to Amazon and Netflx?
Replies: 10
Views: 1372

Re: Streaming alternatives to Amazon and Netflx?

I seriously would just get a chromecast then cast content from youtube. I just watch a documentary by national geographic on sharks and killer whales last night. Free! :thumbsup Lots of great free content on the Internet. Paramount put a huge collection of stuff out legitimately on Youtube: https:/...

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