Search found 97 matches

by Benjamin Buffett
Fri Jan 17, 2020 5:06 pm
Forum: Investing - Theory, News & General
Topic: Does anyone have 'Lazy Portfolios'?
Replies: 88
Views: 10302

Re: Correction

The main idea behind lazy portfolios: holding a relatively fixed allocation to stocks and bonds throughout your investing career. Sorry, this is not the main idea behind lazy portfolios. The main idea is to keep investing simple. Lazy portfolios, like The Three Fund Portfolio , are not designed to ...
by Benjamin Buffett
Fri Jan 17, 2020 3:57 pm
Forum: Personal Investments
Topic: 30/70 in Accumulation Phase?
Replies: 79
Views: 7078

Re: 30/70 in Accumulation Phase?

I agree, though the point of contention when looking at retirement portfolios as buckets is how much to put in the cash bucket. I prefer cash to bonds mostly for its stability and near instant liquidity. Bonds have similar volatility to stocks, but less attractive potential returns(generally speakin...
by Benjamin Buffett
Fri Jan 17, 2020 10:54 am
Forum: Personal Investments
Topic: 30/70 in Accumulation Phase?
Replies: 79
Views: 7078

Re: 30/70 in Accumulation Phase?

I have been coming around to the investing philosophy of buckets. Would it make sense to have a 3-5 year living expense bucket in CD's or relatively safe highly liquid assets that you could draw upon if there was a bear market? That way you could have a 50/50 portfolio and increase the chance that ...
by Benjamin Buffett
Mon Jan 13, 2020 9:42 am
Forum: Investing - Theory, News & General
Topic: Lazy Portfolio Asset Allocations
Replies: 13
Views: 990

Re: Lazy Portfolio Asset Allocations

From the 100% equities (S&P500) portfolio mentioned by White Coat Investor to the 50/50 couch potato portfolio of Scott Burns, the question is, what is the theoretical optimum asset allocation for a lazy portfolio. Finding that sweet spot between risk and returns. The ideal portfolio has non-equity...
by Benjamin Buffett
Mon Jan 13, 2020 9:35 am
Forum: Investing - Theory, News & General
Topic: Lazy Portfolio Asset Allocations
Replies: 13
Views: 990

Re: Lazy Portfolio Asset Allocations

Those are some really good points on TIPS. For some reason those don't come to mind as quickly as bonds and treasuries. TIPS probably are the smarter move considering the low rate environment, they certainly are lower in risk. :sharebeer
by Benjamin Buffett
Mon Jan 13, 2020 8:28 am
Forum: Investing - Theory, News & General
Topic: Lazy Portfolio Asset Allocations
Replies: 13
Views: 990

Re: Lazy Portfolio Asset Allocations

You answered your own question by calling it a "theoretical optimum asset allocation". Knowing the actual optimal asset allocation is not possible. The perfect portfolio can only be known in retrospect. We diversify based on our ability and need for risk and then hope for the best. Rick Ferri Yeah,...
by Benjamin Buffett
Mon Jan 13, 2020 8:22 am
Forum: Investing - Theory, News & General
Topic: Lazy Portfolio Asset Allocations
Replies: 13
Views: 990

Re: Lazy Portfolio Asset Allocations

Would it not be lazier to use mutual funds, rather than ETFs :wink: . I'd want to add a safety factor of at least 2X, thus reducing stock allocation to around 60%. I think that assuming things will always recover in 5 years or less is an optimistic assumption based on the relatively short history o...
by Benjamin Buffett
Mon Jan 13, 2020 8:06 am
Forum: Investing - Theory, News & General
Topic: Lazy Portfolio Asset Allocations
Replies: 13
Views: 990

Re: Lazy Portfolio Asset Allocations

I do believe that both of your beginning assumptions are incorrect; I’m sure other users have the citations on that. If you look at the oft-posted efficient frontier graph that floats around this forum, 30/70 stocks/bonds is the sweet spot between risk and return. Unfortunately that allocation is v...
by Benjamin Buffett
Sat Jan 11, 2020 6:16 pm
Forum: Investing - Theory, News & General
Topic: Lazy Portfolio Asset Allocations
Replies: 13
Views: 990

Lazy Portfolio Asset Allocations

From the 100% equities (S&P500) portfolio mentioned by White Coat Investor to the 50/50 couch potato portfolio of Scott Burns, the question is, what is the theoretical optimum asset allocation for a lazy portfolio. Finding that sweet spot between risk and returns. The ideal portfolio has non-equity ...
by Benjamin Buffett
Fri Dec 20, 2019 9:49 am
Forum: Investing - Theory, News & General
Topic: Does anyone own gold?
Replies: 148
Views: 19178

Re: Does anyone own gold?

No I don't. When I was a kid I saw a Twilight Zone Episode where two men traveled with bags of stolen gold and put themselves to sleep for 200 years. They thought when they woke up the gold would be worth so much that they will be the richest men on earth. When they woke up, they found out the futu...
by Benjamin Buffett
Wed Dec 18, 2019 4:08 pm
Forum: Investing - Theory, News & General
Topic: An Analysis of the Moaty-ness of Index Funds
Replies: 8
Views: 858

Re: An Analysis of the Moaty-ness of Index Funds

Not to be harsh, but I don't think you understand the concept of a "moat". It is not related in any way to the S&P 500. And, "Warren Buffett has mentioned that his investing process looks at three criteria. I will be viewing these through a Boglehead's lens: 1 Value: Financial Soundness and Price, ...
by Benjamin Buffett
Wed Dec 18, 2019 4:04 pm
Forum: Investing - Theory, News & General
Topic: An Analysis of the Moaty-ness of Index Funds
Replies: 8
Views: 858

Re: An Analysis of the Moaty-ness of Index Funds

AlphaLess wrote:
Tue Dec 17, 2019 11:20 pm
I just came to this thread because I was impressed by the Topic Author's name:

Benjamin Buffett.

What a name!

If you combine Benjamin Graham with Warren Buffett, you get Benjamin Buffet.
That is exactly where the name came from. :happy
by Benjamin Buffett
Tue Dec 17, 2019 5:19 pm
Forum: Investing - Theory, News & General
Topic: An Analysis of the Moaty-ness of Index Funds
Replies: 8
Views: 858

An Analysis of the Moaty-ness of Index Funds

One of the most famous value investors of all time, Warren Buffett, is also one of the primary recommenders of Index funds. How do index funds stack up according to his basic value investing process? Here are some interesting thoughts I have had: Value Investing Through the Lens of Warren Buffett Wa...
by Benjamin Buffett
Thu Jul 04, 2019 8:19 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2690
Views: 1774712

Re: The Three-Fund Portfolio

Whenever people I know be them family, friends, colleagues, or people I know elsewhere ask me about investing or setting up a retirement account I loan them one book: that book is my hardback copy of The Boglehead's Guide to the Three Fund Portfolio. It really is the best book I have ever read on th...
by Benjamin Buffett
Thu Jul 04, 2019 8:06 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle on The Fourth of July (Independence Day)
Replies: 10
Views: 1262

Re: Jack Bogle on The Fourth of July (Independence Day)

I wish everyone a happy Fourth of July as well. Indeed without the Declaration of Independence we would not have the opportunities that we have today. It is without Jack Bogle and the Larimore's book on The Three Fund Portfolio, I would not be where I am today on my path to retirement. Have a great ...
by Benjamin Buffett
Mon Jun 24, 2019 4:56 pm
Forum: Investing - Theory, News & General
Topic: Efficient frontier?
Replies: 23
Views: 4838

Re: Efficient frontier?

The "efficient frontier" is language coined by Harry Markowitz as part of what's now called "modern portfolio theory." As typically presented nowadays, it incorporates ideas from William F. Sharpe and the "CAPM" (Capital Assets Pricing Model). As a way of thinking about investment portfolios, it is...
by Benjamin Buffett
Tue Jun 18, 2019 6:59 pm
Forum: Investing - Theory, News & General
Topic: short term treasury ETFs a money market account substitute?
Replies: 20
Views: 2506

Re: short term treasury ETFs a money market account substitute?

Excellent point there, I was not aware that Vanguard's money market account has a higher return than VGSH, that is very useful information.
by Benjamin Buffett
Tue Jun 18, 2019 6:24 pm
Forum: Investing - Theory, News & General
Topic: short term treasury ETFs a money market account substitute?
Replies: 20
Views: 2506

Re: short term treasury ETFs a money market account substitute?

Yeah its price is so stable, I kind of like that, I especially like that its returns come from its distributions, at least for stability.
by Benjamin Buffett
Tue Jun 18, 2019 5:36 pm
Forum: Investing - Theory, News & General
Topic: short term treasury ETFs a money market account substitute?
Replies: 20
Views: 2506

Re: short term treasury ETFs a money market account substitute?

Interesting, and excellent point on the tax concerns. I was thinking of zero commission purchases, as in through Vanguard, M1, Robinhood, and some other brokers that sell certain ETF shares without commissions. But the capital gains could be an issue. I was mostly thinking of intermediate term savin...
by Benjamin Buffett
Tue Jun 18, 2019 5:24 pm
Forum: Investing - Theory, News & General
Topic: short term treasury ETFs a money market account substitute?
Replies: 20
Views: 2506

short term treasury ETFs a money market account substitute?

I noticed that VGSH in my current portfolio, being government treasuries(relatively default safe) and short term(relatively safe from rising interest rates) could be a good place to park short term money. Could this be a better option for a high yield savings account, if purchased with very low comm...
by Benjamin Buffett
Tue Jun 18, 2019 9:01 am
Forum: Investing - Theory, News & General
Topic: Why do large personal portfolios include bonds?
Replies: 171
Views: 15483

Re: Why do large personal portfolios include bonds?

I would say that a portfolio with diversification is always a better choice than one without. I would say that a person with large amounts of money, or a low spending rate, could easily get away with something like 90/10 stock/bond, or even have 90/10 stock/short term treasuries, so long as they buy...
by Benjamin Buffett
Mon Jun 17, 2019 3:09 pm
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Target Date Funds, Performance and Risk
Replies: 5
Views: 761

Re: Balanced Funds and Target Date Funds, Performance and Risk

Thanks for pointing that out, it seemed suspiciously odd, and that makes perfect sense to me. I could put all of my money into nothing but TIPS and not loose money in a crash......but I wouldn't make very much either.
by Benjamin Buffett
Mon Jun 17, 2019 11:13 am
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Target Date Funds, Performance and Risk
Replies: 5
Views: 761

Re: Balanced Funds and Target Date Funds, Performance and Risk

I used "portfolio visualizer" on it, it showed the balanced fund win out a bit, it does take ER into account I think. I tested VBINX against VTTVX 2025. One thing concerns me, and that is I wonder if Portfolio Visualizer, and the article was smart enough to look at the sample TDF as a dynamically ch...
by Benjamin Buffett
Mon Jun 17, 2019 9:53 am
Forum: Non-US Investing
Topic: Best Brokers for those in other nations
Replies: 10
Views: 1522

Re: Best Brokers for those in other nations

Thank you all very much for your input, you are right, it is indeed a mine field.
by Benjamin Buffett
Mon Jun 17, 2019 9:50 am
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Target Date Funds, Performance and Risk
Replies: 5
Views: 761

Balanced Funds and Target Date Funds, Performance and Risk

I saw a very interesting article, and while it will not impact my investment plan(manual re-balancing of Vanguard index ETFs), I found it interesting, almost unbelievable that a 50/50 balanced portfolio could preform a target date fund in the long run with only a .5 expense ratio difference. I under...
by Benjamin Buffett
Tue May 21, 2019 8:25 pm
Forum: Investing - Theory, News & General
Topic: Permanent Portfolio - A Sympathetic Boglehead's Perspective
Replies: 204
Views: 33163

Re: Permanent Portfolio - A Sympathetic Boglehead's Perspective

Personally I prefer a simple two fund portfolio, more specifically a lazy portfolio. However I do see some attractive characteristics for the permanent portfolio, namely its stability. I however am averse to non productive assets, such as gold, except in small amounts.........real estate or TIPS see...
by Benjamin Buffett
Fri May 10, 2019 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Do you rent even if you can afford to buy?
Replies: 131
Views: 24360

Re: Do you rent even if you can afford to buy?

My personal stance on home ownership is that it can be a good investment, but is not always. Can you afford buying a home? Can you afford to not move, and stay where you are for the next five or ten years? If not then you may not want to buy a home yet. Have you already contributed to your 401k up t...
by Benjamin Buffett
Thu Apr 25, 2019 6:23 pm
Forum: Investing - Theory, News & General
Topic: If you could have only one fund, what would it be?
Replies: 175
Views: 45495

Re: If you could have only one fund, what would it be?

An (oversimplified) view of modern portfolio theory is that you pick the ideal portfolio with the ideal risk adjusted returns, and invest in that. To lower risk keep more in cash, to increase risk add leverage. A simple one fund approach: target date fund, I would suggest Vanguard's if I were recomm...
by Benjamin Buffett
Sun Apr 14, 2019 4:46 pm
Forum: Investing - Theory, News & General
Topic: A different approach to asset allocation
Replies: 1447
Views: 685043

Re: A different approach to asset allocation

I remember a video on the Crisis of Credit, it describes leverage in the following way: "Leverage turns good deals into great deals" but goes on to state that potential risk and loss is also magnified. Personally I think that ETFs such as SSOs offer a good supply of cheap leverage that can be used i...
by Benjamin Buffett
Tue Apr 09, 2019 5:02 pm
Forum: Investing - Theory, News & General
Topic: Grok's Tip#9: To Manage Risk Well, Use a Bar-Bell
Replies: 65
Views: 20657

Re: Grok's Tip#9: To Manage Risk Well, Use a Bar-Bell

I would consider a barbell simply a stripped down version of a tilted, or balanced, portfolio. Lets consider a bland portfolio, a blob of intermediate risk assets.....low returns in all markets, but also low losses. Think of the Permanent Portfolio, then lets look at the Couch Potato Portfolio, 50% ...
by Benjamin Buffett
Tue Mar 26, 2019 1:55 pm
Forum: Personal Investments
Topic: All in with Balanced Index fund
Replies: 52
Views: 11058

Re: All in with Balanced Index fund

...why VBINX isn't more popular? Ask Jack said, VBINX is really all most investors need... There is a very broad range of balanced funds that could quite arguably be "all most investors really need." Here are a few, off the top of my head, and the amount of assets each holds. I note that you have 2...
by Benjamin Buffett
Tue Mar 26, 2019 1:50 pm
Forum: Personal Investments
Topic: All in with Balanced Index fund
Replies: 52
Views: 11058

Re: All in with Balanced Index fund

Own VBINX and you're just fine. BTW 46% of S&P 500 company revenue is International. You don't have to own an international fund in this day and age to get International exposure. I believe Mr. Bogle himself mentioned that, which was good enough for me! I respect Jack Bogle very much, and think his...
by Benjamin Buffett
Fri Feb 08, 2019 10:21 am
Forum: Personal Investments
Topic: Home Purchase and Portfolio Plans, Update 2019
Replies: 2
Views: 288

Home Purchase and Portfolio Plans, Update 2019

Comprehensive Investment and Retirement Plan, Updated 2019 1 . Frugality and Cost Containment a. Buy a home with a sizable down payment and decent interest rate in an effort to reduce costs of living and gain equity. b. Continue buying and using used vehicles, price is what one pays, value is what ...
by Benjamin Buffett
Sun Jan 20, 2019 3:49 pm
Forum: Non-US Investing
Topic: Best Brokers for those in other nations
Replies: 10
Views: 1522

Re: Best Brokers for those in other nations

Thank you very much for the information.
by Benjamin Buffett
Sat Jan 19, 2019 5:11 pm
Forum: Non-US Investing
Topic: Best Brokers for those in other nations
Replies: 10
Views: 1522

Best Brokers for those in other nations

I have a friend in East Africa that asked me about where I invest my money and I said I buy US index funds, he wanted to know if something existed that would allow him a low cost way to buy US index funds. Does anyone here have any ideas of some brokers that might be useful for someone in his positi...
by Benjamin Buffett
Fri Jan 18, 2019 4:12 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle's Obituary From The Family
Replies: 48
Views: 16777

Re: Jack Bogle's Obituary From The Family

Thank you for helping the average investor get a fair shake on wall street, we will never forget your efforts, nor will we ever forget your great advice. Jack Bogle truly was the investor's best friend, big and small.
by Benjamin Buffett
Fri Jan 18, 2019 4:00 pm
Forum: Investing - Theory, News & General
Topic: Tributes to Jack Bogle
Replies: 204
Views: 27460

Re: Tributes to Jack Bogle

I greatly appreciate his invention of the index fund and his many years of solidly good advice. I respect him as much or more than Warren Buffett, and will miss his candid and useful advice.
by Benjamin Buffett
Sat Jan 05, 2019 10:27 am
Forum: Investing - Theory, News & General
Topic: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)
Replies: 24
Views: 1191

Re: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)

I think if I were in an economy before exchanges I would invest 50% into rental real estate equity, and 50% into cash. It would be conservative, but most nations that existed before exchanges also tended to lack social services and social security. Of course this would not work with every investor a...
by Benjamin Buffett
Sat Jan 05, 2019 10:23 am
Forum: Investing - Theory, News & General
Topic: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)
Replies: 24
Views: 1191

Re: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)

A boglehead portfolio is really just a simplification if dividing your investments between business, international business, and low risk currency lending, simplified and made more economical through the use of index funds. Since investing 100% in the S&P 500 is a Boglehead portfolio and investing ...
by Benjamin Buffett
Sat Jan 05, 2019 10:19 am
Forum: Investing - Theory, News & General
Topic: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)
Replies: 24
Views: 1191

Re: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)

Does the OP mean a society without corporations, or a society were all corporations have gone private ? Not really, I guess post apocalyptic scenarios would be included, but I was mostly talking about markets without public exchanges, in example societies with resources and currency before "exchang...
by Benjamin Buffett
Sat Jan 05, 2019 10:16 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle - Two Fund Portfolio
Replies: 483
Views: 61396

Re: Jack Bogle - Two Fund Portfolio

I would consider a two fund portfolio adequate, however for long recessions, such as the poor growth of the Japanese economy, would, at least in my opinion, make the bond fund more important. With a two fund portfolio you could be waiting longer than someone with an internationally diversified portf...
by Benjamin Buffett
Fri Jan 04, 2019 6:50 pm
Forum: Investing - Theory, News & General
Topic: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)
Replies: 24
Views: 1191

Re: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)

Does the OP mean a society without corporations, or a society were all corporations have gone private ? Not really, I guess post apocalyptic scenarios would be included, but I was mostly talking about markets without public exchanges, in example societies with resources and currency before "exchang...
by Benjamin Buffett
Fri Jan 04, 2019 2:34 pm
Forum: Investing - Theory, News & General
Topic: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)
Replies: 24
Views: 1191

Re: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)

The Talmud suggested, “...Let every man divide his money into three parts, and invest a third in land, a third in business and a third let him keep by him in reserve...” I consider the talmudic investment strategy to be in many ways an ancient predecessor to the boglehead portfolio of today.......I...
by Benjamin Buffett
Fri Jan 04, 2019 2:05 pm
Forum: Investing - Theory, News & General
Topic: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)
Replies: 24
Views: 1191

Re: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)

If we were in a society before stock exchanges and bond exchanges or boards, how would one construct a three asset portfolio similar to the bogleheads portfolio? Just because there's no stock exchange doesn't mean there's no partial ownership of companies. The London Stock Exchange was founded in 1...
by Benjamin Buffett
Fri Jan 04, 2019 1:53 pm
Forum: Investing - Theory, News & General
Topic: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)
Replies: 24
Views: 1191

Re: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)

The BH 3-fund portfolio didn't choose 3 funds because that was a magic number. It just happened to be the minimum number of asset classes needed to provide a broad level of diversification in the investment environment that exists today (And a good number of people here think you can do just fine w...
by Benjamin Buffett
Fri Jan 04, 2019 1:40 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle says rebalancing is overhyped?!
Replies: 149
Views: 22241

Re: A great 2013 discussion brought back to life!

I haven't rebalanced, and I don't plan to; I remember reading this discussion in 2013. It reinforced my plan to skip rebalancing. I think that W.Bernstein also doesn't recommend rebalancing. I also don't have a written investment plan...an IPS. I decided to skip that. My IPS is to buy and hold safe...
by Benjamin Buffett
Fri Jan 04, 2019 1:29 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle says rebalancing is overhyped?!
Replies: 149
Views: 22241

Re: Jack Bogle says rebalancing is overhyped?!

Rebalancing remains in the area of management and market timing and value investing. To be more aptly described I would consider rebalancing to be: 1 a form of systematic value investing using market timing. 2 the form of market timing is built around reversion to the mean 3 there is a positive effe...
by Benjamin Buffett
Thu Jan 03, 2019 6:15 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle says rebalancing is overhyped?!
Replies: 149
Views: 22241

Re: Jack Bogle says rebalancing is overhyped?!

We cannot use reversion to the mean as a form of market timing, nor as a kind of reliable crystal ball. Agreed, but I feel there are three theories about how an asset class behaves after a boom or crash implicit in our discussion here: 1. (+) Reversion to the mean. Then rebalancing reduces risk. 2....
by Benjamin Buffett
Thu Jan 03, 2019 6:07 pm
Forum: Investing - Theory, News & General
Topic: Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)
Replies: 24
Views: 1191

Is there a way to construct a decent three asset portfolio before efficient market exchagnes? (Investment theory)

If we were in a society before stock exchanges and bond exchanges or boards, how would one construct a three asset portfolio similar to the bogleheads portfolio? Direct land investment would probably exist, as would investment in precious metal and or commodities.......cash could be an investment fo...
by Benjamin Buffett
Wed Jan 02, 2019 5:56 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2690
Views: 1774712

Re: The Three-Fund Portfolio

The Permanent Portfolio was meant to survive inflation, deflation, growth, and recession. Interestingly enough the three fund portfolio has some of these features: * During times of national growth domestic equities shine * During times of recession bonds and their index funds can show their stabil...