Search found 35 matches

by koekebakker
Fri Dec 04, 2015 1:30 am
Forum: Investing - Theory, News & General
Topic: Long-Term bonds: do you use them in your AA?
Replies: 12
Views: 1034

Re: Long-Term bonds: do you use them in your AA?

I use them to create a LT/ST barbell which takes advantage of the much better rates of savings accounts/CD's vs ST bonds.
So half of my fixed income is LT-government bonds.
by koekebakker
Fri Oct 30, 2015 1:03 am
Forum: Investing - Help with Personal Investments
Topic: Concerned about European stocks
Replies: 14
Views: 2500

Re: Concerned about European stocks

Of course since the US seems to have entered into a period of stagnant economic performance this gap between EAFE and US will probably narrow, but I bet it will still outperform EAFE in local currency terms by 2-3% a year over a decade or longer periods. But why would it do that? The European stock...
by koekebakker
Thu Oct 29, 2015 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Emergency fund investing
Replies: 41
Views: 4166

Re: Emergency fund investing

If you really, really want to invest your EF, just put 10-20% into stocks. I wouldn't bother with a couple percent oil, gold etc. in a EF as the amounts invested will be really small.
by koekebakker
Tue Oct 20, 2015 11:45 am
Forum: Investing - Theory, News & General
Topic: Adding 5% gold to 60/40 simulates lower volatility
Replies: 29
Views: 2174

Re: Adding 5% gold to 60/40 simulates lower volatility

The price of gold was fixed before 1972.
by koekebakker
Mon Sep 28, 2015 11:40 pm
Forum: Investing - Theory, News & General
Topic: A better Permanent Portfolio?
Replies: 31
Views: 2664

Re: A better Permanent Portfolio?

The PP is 25% stocks + 25% long USA T-bonds + 25% gold + 25% cash. The cash and the gold are total drags. A far better port would be 50% stocks + 50% long USA T-bonds. Better in what way, and for what purposes? Lump 25% cash and 25% LT bonds together and you have 50% intermediate treasuries. Add 25...
by koekebakker
Sun Aug 23, 2015 1:47 am
Forum: Investing - Theory, News & General
Topic: How long will you"Stay the Course"?
Replies: 99
Views: 9701

Re: How long will you"Stay the Course"?

Staying the course shouldn't be a question. Your portfolio has to be conservative enough to withstand 30+ years of market-madness without you even getting close to selling at the wrong times. That means that most investors who are already getting nervous after one bad week are probably taking too mu...
by koekebakker
Sun Aug 02, 2015 1:33 am
Forum: Investing - Theory, News & General
Topic: Everybody is sick of gold - Is now the time to buy??
Replies: 37
Views: 4951

Re: Everybody is sick of gold - Is now the time to buy??

When is the time to buy stocks? Or Bonds? Or anything really? Was it a good time to buy stocks in 1930? Or was it better to wait untill the stock market recovered from the depression? As with any asset you stick to your allocation and rebalance when necessary. I have a 10% gold allocation as I think...
by koekebakker
Tue Jul 21, 2015 3:28 am
Forum: Investing - Help with Personal Investments
Topic: WisdomTree Europe SmallCap Dividend UCITS ETF VS. iShares MSCI EMU Small Cap UCITS ETF
Replies: 2
Views: 348

Re: WisdomTree Europe SmallCap Dividend UCITS ETF VS. iShares MSCI EMU Small Cap UCITS ETF

Those two etfs are pretty different.

Are you looking for an emu small cap fund or a european one?

And do you want a high dividend etf or are you looking for a european small value substitute?
by koekebakker
Sun Jul 19, 2015 1:08 am
Forum: Investing - Help with Personal Investments
Topic: NON-US (Ireland) ETFs - Simplified Ultimate Buy and Hold Porfolio
Replies: 55
Views: 8436

Re: NON-US (Ireland) ETFs - Simplified Ultimate Buy and Hold Porfolio

Have you thought about this Large Cap combination? iShares MSCI World Value Factor UCITS ETF iShares Core MSCI World ETF The split between US and non-US in the simplified B&H is hard to implement outside the USA because of the lack of world-ex-US etf's. It would be interesting if you could combi...
by koekebakker
Sun Jul 12, 2015 4:05 am
Forum: Investing - Help with Personal Investments
Topic: [Netherlands] Sacrificing stock diversification for lower TER
Replies: 5
Views: 598

Re: [Netherlands] Sacrificing stock diversification for lower TER

Thank you for the nice comment, very helpful that it gets looked at critically. And that you like it seems like a good sign to me. Don't put too much stock into my opinion, but I'll try to think of possible additions/improvements. That wiki will be of tremendous help for Dutch Bogleheads. There's n...
by koekebakker
Sun Jul 12, 2015 1:33 am
Forum: Investing - Help with Personal Investments
Topic: [Netherlands] Sacrificing stock diversification for lower TER
Replies: 5
Views: 598

Re: [Netherlands] Sacrificing stock diversification for lower TER

Hi Micks, Thanks for the reply! I try not to obsess about cost differences, but it's hard to draw the line. A 0.25% difference seems substantial to me, but I hadn't thought of cash drag before and that is indeed something to think about when comparing costs. For now I will probably just keep using I...
by koekebakker
Sat Jul 11, 2015 6:13 am
Forum: Investing - Help with Personal Investments
Topic: [Netherlands] Sacrificing stock diversification for lower TER
Replies: 5
Views: 598

[Netherlands] Sacrificing stock diversification for lower TER

Hi all, As a Dutch investor my current stock allocation (45% of my portfolio) is as simple a possible: 100% iShares Core MSCI World UCITS ETF, 0.2% TER. Including withholding tax the total expense of this ETF is approximately 0.45%. I've been looking for some cheaper options and the only etf I found...
by koekebakker
Wed Jul 30, 2014 1:02 am
Forum: Investing - Help with Personal Investments
Topic: Mid-term, Non-retirement, Taxable Investments
Replies: 12
Views: 1531

Re: Mid-term, Non-retirement, Taxable Investments

Can you elaborate as to why you have a mid term goal separate from a retirement goal? Are you saving up for some specific event in 10-15 years? Being young I'm just worried about tying up all my assets in accounts I can't access for 35-40 years. No specific purpose in mind. Maybe start a business, ...
by koekebakker
Fri Aug 23, 2013 12:27 am
Forum: Investing - Theory, News & General
Topic: International allocation for an Euro currency country?
Replies: 15
Views: 1050

Re: International allocation for an Euro currency country?

I've never heard a convincing argument against global market cap.

The only reason I can think of for over-weighting domestic stocks is the possibility of lower costs. Eurostoxx 50 trackers are very cheap compared to MSCI World trackers.
by koekebakker
Sun Jul 14, 2013 3:50 am
Forum: Investing - Help with Personal Investments
Topic: Foreign stocks as a % of your stock asset allocation
Replies: 61
Views: 7848

Re: Foreign stocks as a % of your stock asset allocation

I encourage anyone to read Chapter 8 of "Common Sense:" On Global Investing. The market in the rest of the world is often unreliable and inefficient. By owning an exact proportion of all that international equity, you are also owning an exact proportion of a very imperfect and inefficient...
by koekebakker
Sun Jul 07, 2013 1:48 am
Forum: Investing - Help with Personal Investments
Topic: Help a 22-year old Dutch student build a lazy portfolio
Replies: 3
Views: 787

Re: Help a 22-year old Dutch student build a lazy portfolio

In your case it would make sense to split your equitypart between a cheap European indexfund like Dx2x and a more expensive global ETF. 0.2% vs 0.5% or 0.55% is a big difference imo.
by koekebakker
Sun Jun 23, 2013 3:23 am
Forum: Investing - Theory, News & General
Topic: Gold continues its free fall
Replies: 34
Views: 4796

Re: Gold continues its free fall

I agree with Rick Ferri that you want to diversify your portfolio with asset classes that have real returns over time. Gold has a zero real return over time. If you happen to buy gold when it is really expensive, it could be a big drag on your returns and not be the hedge that you wanted. If you bu...
by koekebakker
Wed Jun 12, 2013 11:49 pm
Forum: Investing - Help with Personal Investments
Topic: 3 funders with a pinch of gold, silv
Replies: 22
Views: 1417

Re: 3 funders with a pinch of gold, silv

As a EU-investor, I've got a 50/40/10 portfolio of Global stocks/Eurozone bonds/Physical Gold. So 2 funds + a little gold. The reason I included it is that I wanted to diversify beyond stocks/bonds. I don't own any other hard assets or real estate and I think it's important to have at least somethin...
by koekebakker
Fri Mar 05, 2010 11:46 am
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1301526

...you can't really pin down better results than the simple 40% rebalance bands advocated by PP.... I believe Harry Browne advocated rebalancing when any asset class hit 15% or 35%. He wanted at least 15% of each asset in case it had to "carry the portfolio." Rebalancing when an asset-cla...
by koekebakker
Sun Dec 13, 2009 11:10 am
Forum: Investing - Theory, News & General
Topic: Top Stocks for 2010
Replies: 27
Views: 3697

I think he meant 5 stocks outperformed the index and 5 stocks underperformed it.
by koekebakker
Thu Dec 10, 2009 11:57 am
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1301526

Isn't 4-5% expected real return a bit optimistic? With 50% invested in cash and gold I expect my PP to provide about 1-2% real return, which is fine with me. With expectations of 1-2% real, I think you have about as close to a guaranteed outcome without a guarantee. History is all we have to go by....
by koekebakker
Thu Dec 10, 2009 9:13 am
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1301526

The PP approach may look great when backtested, but when it comes to real world implementation and one's ability to stick with it through thick and thin, the story becomes suspect. And that's all that really matters - can you stick with a strategy to give it a shot at coming through for you, or wil...
by koekebakker
Sat Sep 19, 2009 1:47 am
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1301526

Same here! Everytime, after studying some new approach, I have to convince myself again why I'm investing PP-style. So far I've always come back to the PP. It's important to note as well that Browne's PP isn't all that different from an orthodox Boglehead-portfolio. Although all the controversy seem...
by koekebakker
Sat Sep 19, 2009 1:32 am
Forum: Investing - Theory, News & General
Topic: Rick Ferri Changes His Mind About Commodities (NOT)
Replies: 32
Views: 4809

We have a tendency to think, "This is it. This is the end of America as we know it." That was how it was in the 1970s and that is how it is 30 year later. But, how many times in US history has the economy not come back? How many times have stocks and bonds not produced real returns eventu...
by koekebakker
Thu Sep 17, 2009 10:46 am
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1301526

Hi Bogleheads:

A reminder:

"Past performance does not guarantee future performance."

- Harry Browne -

:wink:
by koekebakker
Sat Jul 18, 2009 1:49 am
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1301526

There seem to be lots of people interested in the PP concept, but for many the LT and Gold parts of the PP seem to be just a little bit too extreme. How about a PP that's a little bit more conventional, like: 1/3 stocks 1/3 ST bonds 1/6 LT bonds 1/6 gold. This allocation might be a bit easier to imp...
by koekebakker
Fri May 08, 2009 2:29 am
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1301526

Any thoughts? How would you make the Permanent Portfolio slightly more aggressive? An easy way imo would be to use the variable portfolio for this. For example: you could put 80/90% of your money in the original 4x25 PP, and use the other 10/20% for some more aggressive equity-indexes like the ones...
by koekebakker
Thu May 07, 2009 10:49 am
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1301526

I've recently reread the 1999 edition Failsafe Investing, and I'm wondering what changes HB made in the 2003 edition about the PP's 25% stock allocation. Somewhere I've read that he just advocated a broadbased indexfund like the S&P500, but did he recommend the use of multiple indexfunds as well...
by koekebakker
Sun Apr 12, 2009 7:19 am
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1301526

I've recently decided to gradually change my current basic boglehead 50/50 portfolio to a Eurozone-Permanent Portfolio. Maybe other people reading this topic are interested in a euro-based approach as well, so here's what I've decided to do: Stocks: Vanguard Global Stock Idxfund (TER 0,5%) Bonds: iS...
by koekebakker
Tue Mar 10, 2009 2:28 am
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1301526

Craigr, Tex or anyone, Thanks for all this great discussion. I would be interested to hear your thoughts about a eurozone-based permanent portfolio. For example: Would you advice to hold just European/Eurozone stocks in the PP, or just go global? Do you believe there is a need for exposure to other ...
by koekebakker
Mon Mar 02, 2009 3:40 am
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1301526

The period of the 1980s-1990s were unprecedented in stock returns in US history. These results I feel skew the expectations of what heavy stock allocation portfolios can do consistently for most people. I think there is some truth in this and I believe many investors put way too much faith on the '...
by koekebakker
Sun Dec 14, 2008 3:03 am
Forum: Investing - Help with Personal Investments
Topic: Any investment magazines beating the indexes?
Replies: 12
Views: 2224

Nice one :)
by koekebakker
Thu Nov 27, 2008 5:10 am
Forum: Investing - Help with Personal Investments
Topic: Core stockfunds for an investor living in the Eurozone
Replies: 6
Views: 1631

Core stockfunds for an investor living in the Eurozone

Hi everybody, After reading 'The Little Book of Common Sense Investing' en 'The Coffeehouse Investor', I'm about to change my mutual fund portfolio to indexfunds. Both books were interesting reads, especially since index-investing isn't widely known among Dutch mutualfund investors at all! I've got ...

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