Search found 8027 matches

by Rick Ferri
Sat May 28, 2016 9:36 pm
Forum: Investing - Theory, News & General
Topic: What is evidence based investing?
Replies: 27
Views: 1830

Re: What is evidence based investing?

The phrase "evidence based investing" does have one redeeming quality, it means fewer people will call multi-factor investing "smart beta".

Rick Ferri
by Rick Ferri
Mon May 23, 2016 8:44 pm
Forum: Investing - Theory, News & General
Topic: Lessons from the past - digging though old work records
Replies: 16
Views: 1980

Re: Lessons from the past - digging though old work records

Hi Rick Nice to hear from you again-I thought we had lost you for a while. Your words of wisdom have been a great help to me even though I am a UK resident. Good advice is good advice anywhere! Keep up the good fight-we need you! xxd09 We need a Bogleheads.uk forum! Thanks for the kind words. I nev...
by Rick Ferri
Mon May 23, 2016 4:52 pm
Forum: Investing - Theory, News & General
Topic: Lessons from the past - digging though old work records
Replies: 16
Views: 1980

Re: Lessons from the past - digging though old work records

Interesting. Why did you stick around even a few months if you knew the rest of the company wasn't following your newly enlightened mission? I guess it took a while to get out. Career change is not always an easy decision, especially when one has a family to support. I really appreciate Rick's shar...
by Rick Ferri
Mon May 23, 2016 12:35 pm
Forum: Investing - Theory, News & General
Topic: Lessons from the past - digging though old work records
Replies: 16
Views: 1980

Re: Lessons from the past - digging though old work records

Interesting. Why did you stick around even a few months if you knew the rest of the company wasn't following your newly enlightened mission? I guess it took a while to get out. Career change is not always an easy decision, especially when one has a family to support. I really appreciate Rick's shar...
by Rick Ferri
Mon May 23, 2016 9:46 am
Forum: Investing - Theory, News & General
Topic: Lessons from the past - digging though old work records
Replies: 16
Views: 1980

Lessons from the past - digging though old work records

I thought you might enjoy this bit of personal history... I was digging through some old work records and came across my Smith Barney commission "production" report from the 1990s. It made me laugh to review how my commissions changed from 1995 to 1999. I earned $358k for the company in 19...
by Rick Ferri
Mon May 23, 2016 7:55 am
Forum: Investing - Theory, News & General
Topic: Total market/passive investing as a self-destructive paradigm
Replies: 10
Views: 1529

Re: Total market/passive investing as a self-destructive paradigm

The dispersion of annual return among individual S&P 500 stocks has not changed much in 50 years despite trillions being indexed to the S&P 500. I don't think it will change as long as one will buyer and one willing seller of an individual stock trade at a level they both believe is fair. Yo...
by Rick Ferri
Sat May 14, 2016 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: The Intelligent Investor
Replies: 12
Views: 1403

Re: The Intelligent Investor

The Intelligent Investor by Benjamin Graham is on sale for Amazon Kindle today for $2.99. Does anyone know if this is a good book that falls in line with boglehead thinking? It seems like a great deal, but I don't want to buy something if it's all about how to pick great stocks or other concepts I'...
by Rick Ferri
Sat May 14, 2016 12:36 pm
Forum: Investing - Theory, News & General
Topic: Bond Index Funds - The turning tide from active
Replies: 45
Views: 3567

Re: Bond Index Funds - The turning tide from active

The benefit of a total bond index fund is that it's diversified, simple and low cost. The disadvantage is you have no control over the allocation to sectors. If that bothers you, an alternative is to design your own fixed sector weighted index portfolio by using individual index funds from differenc...
by Rick Ferri
Sat May 14, 2016 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Question (Just starting out)
Replies: 9
Views: 573

Re: Asset Allocation Question (Just starting out)

I suggest reading my blog on Forbes:

The Flight Path Approach to Age-Based Asset Allocation

This approach starts out slow with equities and builds over time. The idea is to get you comfortable with taking more risk by living through a few downturns while you're in a lower allocation.

Rick Ferri
by Rick Ferri
Sat May 14, 2016 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Investing using Rick Ferri's 4 core. Need execution help !
Replies: 18
Views: 1589

Re: Investing using Rick Ferri's 4 core. Need execution help !

This is really cool...

PORTFOLIO CHARTS: Rick Ferri Core Four Portfolio

Rick Ferri

Note: the data used to calculate returns is as the author reported it and I have not independently verified this data.
by Rick Ferri
Sat May 14, 2016 12:00 pm
Forum: Investing - Theory, News & General
Topic: Investor Bulletin: Crowdfunding for Investors
Replies: 9
Views: 919

Investor Bulletin: Crowdfunding for Investors

A message from the Securities and Exchange Commission about crowdfunding: Investor Bulletin: Crowdfunding for Investors "The SEC’s Office of Investor Education and Advocacy is issuing this Investor Bulletin to educate investors about a new investing opportunity in the form of securities-based c...
by Rick Ferri
Sun May 08, 2016 8:50 am
Forum: Local Chapters and Bogleheads Community
Topic: HAPPY BIRTHDAY, MR. BOGLE! May 8, 2016
Replies: 52
Views: 3194

Re: Happy Birthday Mr. Bogle! May 8, 2016

Happy Birthday, Jack!

Thank you for making the world a better place.

Rick Ferri
by Rick Ferri
Wed May 04, 2016 9:45 am
Forum: Investing - Theory, News & General
Topic: Predicting the future
Replies: 10
Views: 1264

Re: Predicting the future

While we cannot predict the future, the expectation is that stocks will return higher than bonds because the risk is higher. The same is true for bonds over cash. You would not take risk if you didn't expect to be rewarded for taking risk. The reward for taking risk is known as a risk premium. These...
by Rick Ferri
Mon Apr 25, 2016 5:17 pm
Forum: Investing - Theory, News & General
Topic: "Save $52,000 on Financial Advice" Forbes
Replies: 103
Views: 12140

Re: "Save $52,000 on Financial Advice" Forbes

Allan is definitely one of the good guys. About his $450 per hour fee...if he raised it to $900 there would still be a line at his door.

Rick Ferri
by Rick Ferri
Sun Apr 24, 2016 8:48 am
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: 7724

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

Tilting away from the total market to increase industry sector exposure or factor exposure and potential earn a higher risk-adjusted return must be a very long-term strategy. I believe it should be a life-long investment strategy because it could take decades to work. If you're not willing to wait t...
by Rick Ferri
Wed Apr 20, 2016 8:39 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri to start robo advisor business
Replies: 10
Views: 4904

Re: Rick Ferri to start robo advisor business

Unfortunately, as I explained in the Bloomberg interview, this idea has not come to fruition. Technology providers are not yet at the point where an established adviser can add a viable robo adviser business.

Rick Ferri
by Rick Ferri
Wed Apr 20, 2016 5:29 pm
Forum: Investing - Theory, News & General
Topic: A different look at the Shiller CAPE 10
Replies: 29
Views: 2688

Re: A different look at the Shiller CAPE 10

One of the valuation indicators I've always talked about is Price to Peak Earnings. See A Second Look at Peak PE . I like this measure because it assumes earnings will get back to their peak and beyond at some point. That is the way our economy is supposed to work, after all. Nothing is perfect. Ric...
by Rick Ferri
Wed Apr 20, 2016 10:02 am
Forum: Investing - Theory, News & General
Topic: A different look at the Shiller CAPE 10
Replies: 29
Views: 2688

Re: A different look at the Shiller CAPE 10

Thanks for the well-written article, Larry. I never agreed with using earnings from a recessionary period nearly 10 years ago to determine the valuation of the stock market today. That's the same as saying an engineer who was unemployed for a year should earn less today because the "average 10 ...
by Rick Ferri
Fri Apr 15, 2016 5:46 pm
Forum: Investing - Theory, News & General
Topic: Did the brokers just get lucky?
Replies: 16
Views: 2602

Re: Did the brokers just get lucky?

I would love to hear from UK investors on this board. From what I understand, they are a different breed. They have a different mindset and tend to favor real estate over stocks. I also understand most of the stock money is invested in high fee funds through banks. It would be great if UK Bogleheads...
by Rick Ferri
Fri Apr 15, 2016 5:40 pm
Forum: Investing - Theory, News & General
Topic: The Problem with Raw Returns in a Backtest
Replies: 19
Views: 2176

Re: The Problem with Raw Returns in a Backtest

I've never seen a new ETF launched against a backtest that wasn't outstanding.

Rick Ferri
by Rick Ferri
Fri Apr 15, 2016 12:19 pm
Forum: Investing - Theory, News & General
Topic: The Problem with Raw Returns in a Backtest
Replies: 19
Views: 2176

The Problem with Raw Returns in a Backtest

Finding an unexploited anomaly in the stock market is equivalent to finding the Holy Grail. It produces and never-ending flow of goodness. Researchers and investors spend millions of hours each year searching for better ways to invest in the stock market. Some calm to find the elusive alpha, only to...
by Rick Ferri
Sat Apr 02, 2016 3:16 pm
Forum: Investing - Theory, News & General
Topic: "One Vanguard, Many DFAs"
Replies: 16
Views: 2756

Re: "One Vanguard, Many DFAs"

"What about those who invest in S&P 500 index funds? There are rules and guidelines that help select the companies that are included in that index...not very passive. But, the fund itself "passively" tracks that index. So if an index is active, but a fund tracks it "passivel...
by Rick Ferri
Thu Mar 31, 2016 4:41 pm
Forum: Personal Consumer Issues
Topic: Recommendations for visit to Austin, TX
Replies: 14
Views: 845

Re: Recommendations for visit to Austin, TX

If you'd like to get out of the city for a day, the second largest wine tasting region in the US after Napa Valley is west of Austin from Johnson City to Fredricksberg along Route 290. It's located in beautiful Texas Hill Country. The blue bonnets are at their peek right now! http://texaswinetrail.c...
by Rick Ferri
Wed Mar 30, 2016 10:00 am
Forum: Investing - Theory, News & General
Topic: "One Vanguard, Many DFAs"
Replies: 16
Views: 2756

Re: "One Vanguard, Many DFAs"

DFA did not--and has not--used the language of strategic beta to describe its approach, but that is what it does. I wouldn't use it either. Morningstar coined the term "strategy beta" decades after DFA starting using quantitative strategies to invest in " additional betas " in t...
by Rick Ferri
Mon Mar 28, 2016 11:22 am
Forum: Investing - Theory, News & General
Topic: FT Article: Smart Beta Not So Clever
Replies: 13
Views: 1275

Re: FT Article: Smart Beta Not So Clever

A couple of years ago, I spoke with Gene Fama about the term "smart beta." This was his response (see: Smart Beta is Silly Talk (Forbes, 2013) Gene Fama, father of efficient market theory and co-creator of the 3-Factor Model, believes if risk factors are expressed as betas, the meaning sho...
by Rick Ferri
Sun Mar 27, 2016 9:56 am
Forum: Investing - Theory, News & General
Topic: FT Article: Smart Beta Not So Clever
Replies: 13
Views: 1275

Re: FT Article: Smart Beta Not So Clever

It's not so much the strategy as it is the increasing ease of investing in the strategy that dilutes the return to everyone. ETFs and mutual funds have made investing in these strategies as easy as a mouse click. This dilutes the premium to all investors because it spreads the premium among many mor...
by Rick Ferri
Fri Mar 25, 2016 6:38 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 486
Views: 107534

Re: Rick Ferri looking to internationalize his portfolio

abuss368 wrote:Rick,

I tried to go to your website to look for past articles. Your website links to Portfolio Solutions. Are you going to bring back your website: http://www.rickferri.com

Best.


Please visit Forbes.com to find all my previous articles.

Rick Ferri
by Rick Ferri
Fri Mar 25, 2016 6:35 pm
Forum: Personal Consumer Issues
Topic: What passive things you do beside investing??
Replies: 44
Views: 3860

Re: What passive things you do beside investing??

Buying two gold wedding rings 33 years ago was the best investment I ever made. Although, I'm not sure marriage qualifies as passive. :shock:

Rick Ferri
by Rick Ferri
Fri Mar 25, 2016 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: When to take time off to travel
Replies: 28
Views: 2373

Re: When to take time off to travel

This is quality of life question rather than a financial question.

You've saved enough. You've served enough. Summer is coming. Hit the road.

Rick Ferri
by Rick Ferri
Thu Mar 24, 2016 10:40 am
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 486
Views: 107534

Re: Rick Ferri looking to internationalize his portfolio

I think China is the shoe to drop. But EM in general have come off enough to warrant a reallocation now.

Rick Ferri
by Rick Ferri
Mon Mar 21, 2016 6:55 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 486
Views: 107534

Re: Rick Ferri looking to internationalize his portfolio

I would move from 30% in international equity to 40% in international equity. That's not quite an accurate global allocation, but closer than 30%.

Rick Ferri
by Rick Ferri
Mon Mar 21, 2016 6:53 pm
Forum: Investing - Theory, News & General
Topic: The Bogleheads Code (my short version)
Replies: 27
Views: 4979

Re: The Bogleheads Code (my short version)

I don't invest in active funds for the active management. I do because sometimes active funds capture market returns better than index funds. Some actively managed funds are more diversified and lower cost than available index funds and ETFs. High yield and municipal bonds are good examples. Rick Fe...
by Rick Ferri
Sun Mar 20, 2016 5:48 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 486
Views: 107534

Re: Rick Ferri looking to internationalize his portfolio

I did not pull the trigger last year. Now would be fine, IMO. But who is to know?

Rick Ferri
by Rick Ferri
Sun Mar 20, 2016 5:42 pm
Forum: Investing - Theory, News & General
Topic: The Bogleheads Code (my short version)
Replies: 27
Views: 4979

Re: The Bogleheads Code (my short version)

Indexing gives you market returns. Everything else is trying NOT to achieve market returns. If you have a good reason to not want market returns, then Wellington et all are good low cost alternatives to achieve this goal.

Rick Ferri
by Rick Ferri
Fri Mar 18, 2016 11:43 am
Forum: Investing - Help with Personal Investments
Topic: 28 year old, $6mm, how to retire?
Replies: 71
Views: 13845

Re: 28 year old, $6mm, how to retire?

It depends on the individual. If 80% equity is too aggressive and the persons may capitulate in a bear market, then more in bonds makes sense. If it doesn't matter, then more bonds now and less in stocks means less cash flow down the road. Dividends increase over time. Interest stays the same (roug...
by Rick Ferri
Thu Mar 17, 2016 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: 28 year old, $6mm, how to retire?
Replies: 71
Views: 13845

Re: 28 year old, $6mm, how to retire?

It depends on the individual. If 80% equity is too aggressive and the persons may capitulate in a bear market, then more in bonds makes sense. If it doesn't matter, then more bonds now and less in stocks means less cash flow down the road. Dividends increase over time. Interest stays the same (rough...
by Rick Ferri
Thu Mar 17, 2016 10:21 am
Forum: Investing - Theory, News & General
Topic: The Bogleheads Code (my short version)
Replies: 27
Views: 4979

Re: The Bogleheads Code (my short version)

I've been thinking about this topic recently and I'm happy you brought it up. Dear Bogleheads, We're not trying to outperform the markets with security selection or earn excess returns through market timing. Many people on this forum "factor tilt" mostly to small cap value. That seems to ...
by Rick Ferri
Thu Mar 17, 2016 10:06 am
Forum: Investing - Theory, News & General
Topic: The Bogleheads Code (my short version)
Replies: 27
Views: 4979

Re: The Bogleheads Code (my short version)

Ha! I get it. More like "fuzzy code."
by Rick Ferri
Wed Mar 16, 2016 8:06 pm
Forum: Investing - Theory, News & General
Topic: The Bogleheads Code (my short version)
Replies: 27
Views: 4979

Re: The Bogleheads Code (my short version)

White Coat Investor wrote:The Code is "more like guidelines" Miss Turner.


It's a code! You're just jealous because you didn't come up with it. No secret Boglehead decoder ring for you! :D

Rick Ferri
by Rick Ferri
Wed Mar 16, 2016 7:01 pm
Forum: Investing - Theory, News & General
Topic: The Bogleheads Code (my short version)
Replies: 27
Views: 4979

Re: The Bogleheads Code (my short version)

Artsdoctor wrote:We are extremely fortunate to have someone on the forum who is consistently level-headed, year in and year out. It is a pleasure having you here, Rick.


I am one of many on this forum. Thank you from all of us!

Rick Ferri
by Rick Ferri
Wed Mar 16, 2016 5:05 pm
Forum: Investing - Theory, News & General
Topic: The Bogleheads Code (my short version)
Replies: 27
Views: 4979

The Bogleheads Code (my short version)

Dear Bogleheads, There is no right answer. There is only the right answer for you. The Bogleheads' philosophy of low-cost passive investing is universal among all members. We're all of the same mindset. We all believe in low-cost passive investing. We're not trying to outperform the markets with sec...
by Rick Ferri
Wed Mar 16, 2016 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: 28 year old, $6mm, how to retire?
Replies: 71
Views: 13845

Re: 28 year old, $6mm, how to retire?

This isn't a question of what you'll earn, it's a question of what you'll spend. Spend below your after-tax income and you'll be fine. The markets will pay you cash-flow of about $120,000 per year if you put 80% in equity and 20% in intermediate-term bonds. Figure $20,000 of that goes to taxes, whi...
by Rick Ferri
Tue Mar 15, 2016 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation - latest from Rick Ferri
Replies: 38
Views: 6213

Re: Asset allocation - latest from Rick Ferri

Thanks, only I made a mistake. It's principles; not principals. Sometimes we get too wrapped up in which fund to buy or which allocation is optimal. The analysis can become paralyzing and it can lead to no action taken. Relax! These details don't matter. What is important is having the right mindset...
by Rick Ferri
Tue Mar 15, 2016 3:59 pm
Forum: Investing - Theory, News & General
Topic: RAFI Has Beaten DFA and Vanguard (3% annually!) Since 2009 on an Absolute and Risk-Adjusted Basis. HOW?!?
Replies: 33
Views: 3728

Re: RAFI Has Beaten DFA and Vanguard (3% annually!) Since 2009 on an Absolute and Risk-Adjusted Basis. HOW?!?

It would be a mistake to say one value strategy is "better" or "worse" based on what happened over the past six years. All total stock market index funds have similar returns because they all hold the roughly the same securities in roughly the same cap weighted amount. Value inve...
by Rick Ferri
Tue Mar 15, 2016 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: 28 year old, $6mm, how to retire?
Replies: 71
Views: 13845

Re: 28 year old, $6mm, how to retire?

This isn't a question of what you'll earn, it's a question of what you'll spend. Spend below your after-tax income and you'll be fine. The markets will pay you cash-flow of about $120,000 per year if you put 80% in equity and 20% in intermediate-term bonds. Figure $20,000 of that goes to taxes, whic...
by Rick Ferri
Sat Mar 12, 2016 11:12 am
Forum: Investing - Theory, News & General
Topic: Excellent article on ETF history
Replies: 2
Views: 457

Excellent article on ETF history

Eric Balchunas of Bloomberg wrote an exceptional article on how ETFs came to be:

The ETF Files: How the U.S. government inadvertently launched a $3 trillion industry.

Rick Ferri
by Rick Ferri
Fri Mar 11, 2016 9:53 am
Forum: Investing - Theory, News & General
Topic: My summary of the latest SPIVA report card
Replies: 8
Views: 862

Re: My summary of the latest SPIVA report card

The funny thing about SPIVA and other comparisons is that the more popular index investing becomes, the more naysayers insist active managers will be able to take advantage of miss-pricing due to "over indexing", and yet indexing continues to outperform in every category.

Rick Ferri
by Rick Ferri
Fri Mar 11, 2016 9:24 am
Forum: Investing - Help with Personal Investments
Topic: Asset allocation - latest from Rick Ferri
Replies: 38
Views: 6213

Re: Asset allocation - latest from Rick Ferri

There is no right answer. There is only the right answer for you. The Bogleheads' philosophy of low-cost passive investing is universal among all members. We're all of the same mindset. However, no two Bogleheads will have the exact same portfolio because we're all difference. How you design and imp...

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