Search found 70 matches

by simplesauce
Sun Jul 16, 2017 9:09 am
Forum: Investing - Theory, News & General
Topic: Is the Total US Stock Market too concentrated?
Replies: 51
Views: 3765

Re: Is the Total US Stock Market too concentrated?

Go with Vanguard Total World Index. Simplicity and diversification all in one. I don't have to think about sectors at all. It's all there. OR Go with a Life Strategy or Target Date Fund. Yes, but I prefer to overweight the US stocks for many reasons brought forth by Jack Bogle. I just wanted to kno...
by simplesauce
Sat Jul 15, 2017 10:48 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel's Not so random walk
Replies: 17
Views: 2662

Re: Burton Malkiel's Not so random walk

Burton Malkiel spent 28 years at Vanguard; I'm not sure when he left, anybody know? Vanguard was founded in 1975, if he was there from the very beginning, 1975 + 28 = 2003. A Random Walk Down Wall Street once was my investing Bible, but I've gotten somewhat disillusioned; I started to get queasy wh...
by simplesauce
Sat Jul 15, 2017 10:45 pm
Forum: Investing - Theory, News & General
Topic: Is the Total US Stock Market too concentrated?
Replies: 51
Views: 3765

Is the Total US Stock Market too concentrated?

I've been learning more about how in the past 20 years, the US stock market has diminished in regards to the amount of publicly traded companies. This might leave an investor who invests in 100% US stocks exposed to certain sectors and not adequately diversified. Has John Bogle commented on this phe...
by simplesauce
Wed Jul 12, 2017 1:09 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel's Not so random walk
Replies: 17
Views: 2662

Burton Malkiel's Not so random walk

http://www.barrons.com/articles/not-so-random-burton-malkiel-throws-his-weight-behind-tetf-1499877742

Seems he's backing a new ETF that tracks a small portion of the market. Expense ratio is over 0.60%. What is going on with this indexing legend?? I loved his original book!
by simplesauce
Sun Jul 02, 2017 7:46 am
Forum: Investing - Theory, News & General
Topic: Does Vanguard gain anything from us investing more internationally?
Replies: 28
Views: 2405

Re: Does Vanguard gain anything from us investing more internationally?

I am just curious; does Vanguard gain anything from having their investors put more money overseas? I see them promoting international stocks and international bonds more and more. Not looking to be skeptical. I just know that the US/International allocation debate is still widely debated. Anyway, ...
by simplesauce
Sat Jul 01, 2017 10:58 pm
Forum: Investing - Theory, News & General
Topic: Does Vanguard gain anything from us investing more internationally?
Replies: 28
Views: 2405

Re: Does Vanguard gain anything from us investing more internationally?

I am just curious; does Vanguard gain anything from having their investors put more money overseas? I see them promoting international stocks and international bonds more and more. Not looking to be skeptical. I just know that the US/International allocation debate is still widely debated. Anyway, ...
by simplesauce
Sat Jul 01, 2017 4:12 pm
Forum: Investing - Theory, News & General
Topic: Does Vanguard gain anything from us investing more internationally?
Replies: 28
Views: 2405

Does Vanguard gain anything from us investing more internationally?

I am just curious; does Vanguard gain anything from having their investors put more money overseas? I see them promoting international stocks and international bonds more and more. Not looking to be skeptical. I just know that the US/International allocation debate is still widely debated. Anyway, f...
by simplesauce
Thu Jun 29, 2017 9:17 pm
Forum: Investing - Theory, News & General
Topic: International Stocks - New thoughts
Replies: 83
Views: 6046

Re: International Stocks - New thoughts

India might be a better bet than China but India has its own set of problems. My guess is that China and India will be very important countries in the future and both will see growing middle class populations. Whatever their problems, they will muddle through. Again, I am not predicting the apocaly...
by simplesauce
Wed Jun 28, 2017 9:45 pm
Forum: Investing - Theory, News & General
Topic: Does Jack Bogle have a conundrum on his hands?
Replies: 63
Views: 4250

Re: Does Jack Bogle have a conflict of interest?

I'm not one of those that thinks Jack Bogle is infallible. But I just lost any respect I had for Merriman. The S&P 500 is an entirely different product. Merriman's suggestion does not deserve a response. And his refusal to release the interview is telling. If the OP's representations are true, ...
by simplesauce
Wed Jun 28, 2017 9:10 pm
Forum: Investing - Theory, News & General
Topic: Does Jack Bogle have a conundrum on his hands?
Replies: 63
Views: 4250

Re: Does Jack Bogle have a conflict of interest?

Thanks for the replies! Great comments. As for the title of this post, when you listen to the podcast, it is clear that Paul Merriman is making the point that because of Jack's affiliation with Vanguard, he may not be able to give investors the true advice he believes in. "Even if Jack Bogle ag...
by simplesauce
Wed Jun 28, 2017 7:22 pm
Forum: Investing - Theory, News & General
Topic: Got a Question for the Experts Panel at the Bogleheads Conference?
Replies: 20
Views: 3237

Re: Got a Question for the Experts Panel at the Bogleheads Conference?

A question for Jonathan Clements. Where do you stand on the "no international" vs "some international" vs "half international" debate on portfolio construction for a US investor? Should we avoid unnecessary risks like currency risk, political risk, investor protections ...
by simplesauce
Wed Jun 28, 2017 7:19 pm
Forum: Investing - Theory, News & General
Topic: Does Jack Bogle have a conundrum on his hands?
Replies: 63
Views: 4250

Does Jack Bogle have a conundrum on his hands?

(Post title edited from "conflict of interest" to "conundrum") Would love reactions to this. I was listening to Paul Merriman's new podcast episode, where he discusses his recent June 2017 in-person interview with Jack Bogle. He didn't release the recording for us, but he summari...
by simplesauce
Tue Jun 27, 2017 6:34 pm
Forum: Investing - Theory, News & General
Topic: VXUS vs VWO + VEA [Number of Holdings]
Replies: 7
Views: 1071

Re: VXUS vs VWO + VEA [Number of Holdings]

It is not even a matter of number of holdings; the index coverage is different. VWO holds Chinese A-shares while VXUS does not. Right. So why own VXUS when it's not fully representative? Is the only reason for simplicity? Some people actively dislike China A shares. Other people (such as myself) co...
by simplesauce
Mon Jun 26, 2017 10:44 pm
Forum: Investing - Theory, News & General
Topic: VXUS vs VWO + VEA [Number of Holdings]
Replies: 7
Views: 1071

Re: VXUS vs VWO + VEA [Number of Holdings]

triceratop wrote:It is not even a matter of number of holdings; the index coverage is different. VWO holds Chinese A-shares while VXUS does not.


Right. So why own VXUS when it's not fully representative? Is the only reason for simplicity?
by simplesauce
Mon Jun 26, 2017 10:42 pm
Forum: Investing - Theory, News & General
Topic: VGK, VPL, VWO, & VSS vs VXUS?
Replies: 11
Views: 1465

Re: VGK, VPL, VWO, & VSS vs VXUS?

Is the any reason to overweight any of these segments in your portfolio--i.e. because you think one or the other will provide above market returns? If not, then VXUS is almost certainly the answer. I had thought his reason was to reduce correlation, which I had bought into. I enjoyed the book, but ...
by simplesauce
Mon Jun 26, 2017 8:39 am
Forum: Investing - Theory, News & General
Topic: Is VXUS better than VEA/VWO?
Replies: 3
Views: 498

Is VXUS better than VEA/VWO?

I'm playing with the idea of simplifying down to one fund instead of two, for my international holdings. However, I noticed that VXUS (Total International Stock ETF) includes only 6,166 stocks , as compared to holding both VEA and VWO (Developed/Emerging Markets ETFs) which would give you a combined...
by simplesauce
Sun Jun 25, 2017 8:04 am
Forum: Investing - Theory, News & General
Topic: International Stocks - New thoughts
Replies: 83
Views: 6046

Re: International Stocks - New thoughts

Here's what Schwab says after looking at data since 1969: http://www.schwab.com/public/schwab/nn/articles/Three-Reasons-Why-Now-is-Not-the-Time-to-Retreat-from-Global-Diversification?cmp=em-RBL That is a whole bunch of speculation and doesn't discuss the risks, currency, etc. That's my problem. Now...
by simplesauce
Sun Jun 25, 2017 7:31 am
Forum: Investing - Theory, News & General
Topic: International Stocks - New thoughts
Replies: 83
Views: 6046

International Stocks - New thoughts

I've posted here over the last few days, wrestling with how much international stock one should own. (I know; it may not truly matter all that much!) So I decided to re-read 2 books that inspired my portfolio originally. John Bogle's "Common Sense On Mutual Funds" and David Swensen's "...
by simplesauce
Sat Jun 24, 2017 5:01 pm
Forum: Investing - Theory, News & General
Topic: Explaining a Bogle quote
Replies: 18
Views: 1164

Re: International stock -- A suggestion

simplesauce: This post may be helpful: How Much International Stock? A Suggestion Best wishes. Taylor Do you still adhere to the 20% international rule of thumb? Do you see any scenarios where you would increase this, as Vanguard and others have continued to do? Also, what are your thoughts on how ...
by simplesauce
Sat Jun 24, 2017 2:55 pm
Forum: Investing - Theory, News & General
Topic: Explaining a Bogle quote
Replies: 18
Views: 1164

Explaining a Bogle quote

Please explain if Bogle has a valid point here, and if it should give us pause about investing internationally: "And we (the U.S.) also have shareholder protections that can be taken for granted. Outside of the U.S., you can be very disappointed. I think it was in Malaysia a few years ago--you ...
by simplesauce
Sat Jun 24, 2017 2:52 pm
Forum: Investing - Theory, News & General
Topic: Anything wrong with 100% US Stocks?
Replies: 35
Views: 2659

Re: Anything wrong with 100% US Stocks?

This is the Bogle quote that makes me hesitant: "And we also have shareholder protections that can be taken for granted. Outside of the U.S., you can be very disappointed. I think it was in Malaysia a few years ago--you couldn't get your money out. Korea is a bit fragile in that regard. Heaven...
by simplesauce
Sat Jun 24, 2017 2:00 pm
Forum: Investing - Theory, News & General
Topic: Anything wrong with 100% US Stocks?
Replies: 35
Views: 2659

Re: Anything wrong with 100% US Stocks?

This is the Bogle quote that makes me hesitant: "And we also have shareholder protections that can be taken for granted. Outside of the U.S., you can be very disappointed. I think it was in Malaysia a few years ago--you couldn't get your money out. Korea is a bit fragile in that regard. Heaven ...
by simplesauce
Sat Jun 24, 2017 1:49 am
Forum: Investing - Theory, News & General
Topic: Anything wrong with 100% US Stocks?
Replies: 35
Views: 2659

Anything wrong with 100% US Stocks?

I hold VT (Vanguard World Stock Fund) which is basically 55% US/45% International. It just makes sense to me for many reasons; Broad diversification, 7,800 stocks, exposure to all parts of the world, no home country bias, etc. However, I do get nervous sometimes when I hear Bogle and Buffett discuss...
by simplesauce
Fri Jun 16, 2017 9:15 am
Forum: Investing - Theory, News & General
Topic: Wealthfront ignores own advice; adds Smart-Beta
Replies: 24
Views: 2641

Wealthfront ignores own advice; adds Smart-Beta

This is really astounding. Burton Malkiel and Charlie Ellis both have written and spoken extensively about the unknowns regarding factor investing, using momentum, value, and small stocks for example. They have been champions of market-cap weighted portfolios. However, they are changing their portfo...
by simplesauce
Sun Jun 11, 2017 8:18 am
Forum: Personal Consumer Issues
Topic: Best Option for a 6-month car?
Replies: 13
Views: 1192

Best Option for a 6-month car?

Hi all. I'm waiting for the 2018 Hyundai Sonata to come out and I can't wait to buy it. But in the meantime, my current car is dying. I need a good option to drive for 6-months. OPTION #1 : Long-term rental. I saw Hertz and Enterprise do this. It will probably cost me a lot of money to do this howev...
by simplesauce
Sat Jun 10, 2017 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Car buying math
Replies: 11
Views: 1231

Help with Car buying math

Hi all. I need a new car asap. Mine is about to kick the bucket. I can get an amazing deal on the 2017 Hyundai Sonata Limited fully loaded. It would cost about $22k after aggressive rebates. MSRP is about $30k. (Hyundai is clearing shop to make room for new models.) However, the 2018 Sonata is comin...
by simplesauce
Mon May 22, 2017 6:59 am
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 10005

Re: Home Country Bias...makes sense?

Can someone address this comment from earlier? "We also have shareholder protections that can be taken for granted. Outside of the U.S., you can be very disappointed. I think it was in Malaysia a few years ago--you couldn't get your money out. Korea is a bit fragile in that regard. Heaven knows...
by simplesauce
Thu May 18, 2017 6:00 am
Forum: Investing - Help with Personal Investments
Topic: Is the Vanguard Balanced Index Fund all you need?
Replies: 58
Views: 9594

Re: Is the Vangaurd Balanced Index Fund all you need?

The only potential issue I see with the Balanced Index fund is lack of international exposure. That has been a net benefit to those who did not partake in the lower international returns. Someone who had held 100% AAPL for the last two years would also have seen a net benefit over holding SP500 but...
by simplesauce
Sun May 14, 2017 9:57 pm
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 10005

Re: Home Country Bias...makes sense?

I really enjoyed reading "Global equities: Balancing home bias and diversification" paper from Vanguard Research. The paper concludes for many investors between 20% to 40% international is appropriate for various reasons such as volatility, currency risks, diversification and cost. Just f...
by simplesauce
Sun May 14, 2017 8:57 pm
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 10005

Re: Home Country Bias...makes sense?

Hawaiishrimp wrote:
simplesauce wrote:
Hawaiishrimp wrote:My AA is: 40% US, 30% International because I believe it's more diversified. I'm just keeping it simple and avoid over-thinking it too much. :wink:

This equals only 70%?


Yea, 30 % Bonds


Ok so you're about 57% US/43% Int'l.
by simplesauce
Sun May 14, 2017 8:40 pm
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 10005

Re: Home Country Bias...makes sense?

Hawaiishrimp wrote:My AA is: 40% US, 30% International because I believe it's more diversified. I'm just keeping it simple and avoid over-thinking it too much. :wink:

This equals only 70%?
by simplesauce
Sun May 14, 2017 7:02 am
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 10005

Re: Home Country Bias...makes sense?

Great replies. As my original post states, I'm not too interested in discussing long term returns, our predictions, comparing charts, etc. Great posts discussing that. But I'm more interested in reviewing the concerns about political risk, inflationary risk, accounting concerns, currency risk, etc. ...
by simplesauce
Sat May 13, 2017 11:50 am
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 10005

Re: Home Country Bias...makes sense?

But not often enough do we address the above. Thank you. Are you kidding? It gets discussed literally every single week on Bogleheads. Someone posts "Bogle said this on CNBC" or "Buffet said that in his shareholder letter" or "What should my international allocation be"...
by simplesauce
Sat May 13, 2017 7:55 am
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 10005

Home Country Bias...makes sense?

Hi all. When Taylor Larimore (much respect) was asked "why not market weights?" by someone trying to pick their US vs International allocation, Taylor replied with this list of concerns: Several reasons: * Higher costs * Approximately half the sales of our 500 largest companies are to fore...
by simplesauce
Wed May 10, 2017 6:37 am
Forum: Investing - Theory, News & General
Topic: Please explain Gap insurance on a car
Replies: 11
Views: 917

Please explain Gap insurance on a car

Hello. I am getting a brand new 2017 car. Approx $27,000. If I put a 25% down payment on the car, ($6,750), and then finance the rest (I found a rate of 2.75%, not bad right?), then do I need Gap insurance? Also, is there anything I need to watch out for the auto loan? I found 2.75% financing from W...
by simplesauce
Mon May 08, 2017 8:56 am
Forum: Personal Consumer Issues
Topic: How do Bogleheads buy cars?
Replies: 71
Views: 7958

Re: How do Bogleheads buy cars?

Great post, thank you. I am a Real Estate agent and I need a nice looking car. If I were to buy 2017, I am looking at Buick or Kia. I haven't test driven yet....not interested if they feel cheap on the inside. I also found a few used cars like a 2012 Lexus or 2015 Infiniti that look very nice and c...
by simplesauce
Mon May 08, 2017 7:40 am
Forum: Personal Consumer Issues
Topic: How do Bogleheads buy cars?
Replies: 71
Views: 7958

Re: How do Bogleheads buy cars?

Can you be more specific about what "my job calls for expensive looking car" means ? Buick's are really not that expensive or upscale (Ive had a couple as rentals and frankly the interiors felt cheap) and if you job is in law, finance or something like that the people who set this expecta...
by simplesauce
Sun May 07, 2017 4:21 pm
Forum: Personal Consumer Issues
Topic: How do Bogleheads buy cars?
Replies: 71
Views: 7958

How do Bogleheads buy cars?

I'm in the market for a new car. Looking at a newer Buick or something similar. My job calls for a nice looking "expensive" car. Anyway, brand new cars are off the table (yes?) because they are not a good value. Better to buy 1-2 years old, certified from the dealer with solid warrantys. D...
by simplesauce
Mon May 01, 2017 8:44 am
Forum: Investing - Theory, News & General
Topic: Are we all forgetting our taxable accounts?
Replies: 79
Views: 10201

Re: Are we all forgetting our taxable accounts?

Quick thought. Every investing book I read talks about retirement. They advise on building an IRA or 401k, etc. Very rarely do they discuss taxable accounts. I think if someone is saving $5,000 per year in their late 20's for example, maybe 2/3 can go into retirement accounts, and 1/3 can go into a...
by simplesauce
Mon May 01, 2017 7:33 am
Forum: Investing - Theory, News & General
Topic: Are we all forgetting our taxable accounts?
Replies: 79
Views: 10201

Are we all forgetting our taxable accounts?

Quick thought. Every investing book I read talks about retirement. They advise on building an IRA or 401k, etc. Very rarely do they discuss taxable accounts. I think if someone is saving $5,000 per year in their late 20's for example, maybe 2/3 can go into retirement accounts, and 1/3 can go into a ...
by simplesauce
Mon Apr 17, 2017 10:13 pm
Forum: Investing - Theory, News & General
Topic: What does John Bogle think of TIPS?
Replies: 6
Views: 1882

Re: What does John Bogle think of TIPS?

from this article "...This time, we see that Jack is moving into TIPS (Treasury Inflation Protected Securities). "In fact, the only investment change I've made in the past few years is a move of about 6% of combined assets from Vanguard Intermediate-Term Bond Index (VBILX) to Vanguard Inf...
by simplesauce
Sun Apr 16, 2017 6:18 pm
Forum: Investing - Theory, News & General
Topic: Is it necessary to diversify across Factors?
Replies: 123
Views: 7545

Re: Is it necessary to diversify across Factors?

Necessary, no. Smart, yes. The case for factor investing is as strong as the case for equity investing IMO (which you've apparently already accepted). But of course, it isn't strictly necessary to invest your savings in anything. I wonder how strong the case is. Many of my favorite authors are not ...
by simplesauce
Sat Apr 15, 2017 7:17 pm
Forum: Investing - Theory, News & General
Topic: Is it necessary to diversify across Factors?
Replies: 123
Views: 7545

Re: Is it necessary to diversify across Factors?

Recently performance for the S&P indexes for the prior 10 year period was : 7% - 500 9% - mid-cap 9% - small-cap So the smaller funds appear to be efficient at various times in the business cycle. There are good companies in the smaller cap funds. Bogle's 5 fund portfolio invested in them. What...
by simplesauce
Sat Apr 15, 2017 5:42 pm
Forum: Investing - Theory, News & General
Topic: Is it necessary to diversify across Factors?
Replies: 123
Views: 7545

Is it necessary to diversify across Factors?

Larry Swedroe says to diversify across factors. The traditional Bogle advice is to diversify by owning a market-cap weighted index fund, and a bond fund. Is there evidence to say that Bogle has missed the research on diversifying across factors? Or is Swedroe relying on specific data that may not co...
by simplesauce
Sat Apr 15, 2017 6:08 am
Forum: Investing - Theory, News & General
Topic: [Vanguard Is Growing Faster Than Everybody Else Combined]
Replies: 34
Views: 2533

Re: NYT article on Vanguard

This paragraph concerned me, any thoughts? "Up and down Wall Street, where the sum of a firm’s assets under management has become a badge of power and sway, Vanguard’s ability to attract and run so much money with so few people has been a cause for envy and disbelief. Some have even warned that...
by simplesauce
Sat Apr 15, 2017 5:57 am
Forum: Investing - Theory, News & General
Topic: Is Bogle's investment style too aggressive?
Replies: 13
Views: 2796

Re: Is Bogle's investment style too aggressive?

I continue to be amazed that there is even a discussion in existence about these things. For detail read the excellent post above by nisi. I also agree that what Mr. Bogle is really talking about completely escapes me, and he is a far more knowledgeable and thoughtful individual than I am about all...
by simplesauce
Fri Apr 14, 2017 6:51 am
Forum: Investing - Theory, News & General
Topic: Is Bogle's investment style too aggressive?
Replies: 13
Views: 2796

Is Bogle's investment style too aggressive?

The title is slightly sarcastic :D In all seriousness, I just finished reading David Swensen's work. He says NO to corporate bonds and municipal bonds. He says a bond portfolio should be 50% TIPS and 50% Treasuries. However Bogle and many others recently have talked about increasing an allocation to...
by simplesauce
Sun Apr 02, 2017 10:14 pm
Forum: Investing - Theory, News & General
Topic: David Swensen's Bond Portfolio
Replies: 8
Views: 1512

Re: David Swensen's Bond Portfolio

KyleAAA wrote:Nothing at all wrong with that. I use 50% intermediate term bond index and 50% TIPS.


I keep hearing TIPS concerns. Any of them concern you?
by simplesauce
Sun Apr 02, 2017 5:53 pm
Forum: Investing - Theory, News & General
Topic: David Swensen's Bond Portfolio
Replies: 8
Views: 1512

David Swensen's Bond Portfolio

50% US Treasuries 50% US TIPS Anything wrong with that? Let it ride for the long haul? His book was written a while back, when bonds had some nice interest payments. Would this still be his advice today? He explains in his book how corporate bonds, municipal bonds, international bonds, mortgage bac...
by simplesauce
Tue Mar 28, 2017 10:24 pm
Forum: Investing - Theory, News & General
Topic: Are TIPS flawed, untested products?
Replies: 12
Views: 1701

Are TIPS flawed, untested products?

When I look at my portfolio, I love it. Vanilla index funds. Not making any strong bets. Just letting it ride. I know I can stick with this allocation for a very long time. That said, the only portion that lingers any doubt in my mind is my TIPS allocation. And not at all because of muted returns or...

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