Search found 81 matches

by Outside
Sun Feb 19, 2012 6:10 pm
Forum: Investing - Theory, News & General
Topic: Zilch Capital, LLC
Replies: 3
Views: 1356

Zilch Capital, LLC

Find this hilarious letter to investors from Zilch Capital, LLC here: https://www.economist.com/node/21547809

It's good to see The Economist putting out material like this. Like Bogleheads have been saying for a long time - hedge funds only benefits those collecting the 2&20.
by Outside
Tue May 31, 2011 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Massive student loans + trust fund
Replies: 28
Views: 4060

Wow, you're lucky your friend steered you here. I agree with all other posters here that you should pay off your loans in the order described. Although I would add one caveat. Only pay of the loans if you are sure you're not going to join the military or the National Health Service Corps (NHSC). If ...
by Outside
Tue May 31, 2011 9:55 am
Forum: Investing - Theory, News & General
Topic: What expenses are not included in Expense Ratio?
Replies: 16
Views: 2261

Dr. Bernstein says that funds lose about 0.1% of return for every 10% of turnover.

Source: Pg 136 "The Investor's Manifesto"
by Outside
Mon May 30, 2011 8:47 pm
Forum: Investing - Theory, News & General
Topic: Surprising facts about Fundamental Indexing
Replies: 21
Views: 4034

Thanks for the interesting post. I especially like the phrase "eliminating negative alpha".
by Outside
Mon May 30, 2011 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Total Stock Market or 500 Index, Mid-, Small-Cap Index
Replies: 12
Views: 2470

Hi gutierer, Congratulations on deciding to implement a passive portfolio. However, your reasons for adding additional asset classes aren't well founded. I'd hate to see you add/overweight certain asset classes w/o having a very good idea of why you are doing it. You'll end up taking on risks which ...
by Outside
Mon May 30, 2011 9:16 am
Forum: Investing - Help with Personal Investments
Topic: Total Stock Market or 500 Index, Mid-, Small-Cap Index
Replies: 12
Views: 2470

gutierer, There is no right answer as investing is more an art than a science. So I'd start by asking: What is your purpose for over-weighting small and midcaps? -If it's that you are trying to increase your exposure to the size risk factor, which you believe will be rewarded with higher returns in ...
by Outside
Fri May 27, 2011 1:28 pm
Forum: Investing - Theory, News & General
Topic: Index vs Passive Funds: What's Larry Talking About?
Replies: 53
Views: 5748

Do you remember Mr. Ferri's article "Buying the Market Isn't as Easy as it Seems"? Do you remember Rick's article on "spindexes"? Why not evaluate a passive fund based on it's merits (costs, ability to capture it's desired market, and tax-efficiency)? Rather than just evaluating a fund based on whe...
by Outside
Fri May 27, 2011 11:45 am
Forum: Investing - Theory, News & General
Topic: Index vs Passive Funds: What's Larry Talking About?
Replies: 53
Views: 5748

It should be noted that the only truly pure passive stock fund is TSM. Trying to figure out which stock to bypass, buy hold ranges to reduce front running and transaction costs etc are completely immaterial to a TSM fund. I agree to a degree. But even this gets a little more complex. Do you remembe...
by Outside
Fri May 27, 2011 9:35 am
Forum: Investing - Theory, News & General
Topic: Index vs Passive Funds: What's Larry Talking About?
Replies: 53
Views: 5748

I think I'm smart enough to understand the simplicity of asset allocation, indexing, leave it alone and rebalance infrequently. But too dumb to get this "secret additional ingredients if you're willing to pay more (for the advisor who is part she elite club who has the double secret access to the g...
by Outside
Thu May 26, 2011 6:49 pm
Forum: Investing - Theory, News & General
Topic: Index vs Passive Funds: What's Larry Talking About?
Replies: 53
Views: 5748

I'm glad Larry brought this topic up in his blog. He very clearly shows some of the disadvantages of index funds compared to passive funds. And just b/c Vanguard doesn't offer many non-index "passive" funds doesn't mean the idea doesn't have merit. Vanguard is excellent, but what about thinking for ...
by Outside
Thu May 26, 2011 11:57 am
Forum: Personal Consumer Issues
Topic: Any Barefoot Runners
Replies: 128
Views: 17329

Moshito,

I've hears good things about the Merrell barefoot shoes, and they definitely look more like a traditional shoe than the five fingers.

http://www.merrell.com/US/en/Barefoot_Collection
by Outside
Wed May 25, 2011 5:09 pm
Forum: Personal Consumer Issues
Topic: Any Barefoot Runners
Replies: 128
Views: 17329

I just broke/dislocated my pinky toe this weekend trail running in my five fingers. I clipped a rock sticking out of the ground in mid stride. Then I felt some numbness and when I pulled my "shoe" off, my toe was at a 90 degree angle! I'll probably still use my five fingers, but now mostly on more e...
by Outside
Wed May 25, 2011 3:42 pm
Forum: Personal Consumer Issues
Topic: Workout plateau -- looking to make changes in diet
Replies: 91
Views: 8702

Also, most Crossfit gyms offer a free class every Saturday morning called "weekend warriors". It might a nice way to change up your routine w/o having to join a Crossfit gym.
by Outside
Wed May 25, 2011 1:02 pm
Forum: Personal Consumer Issues
Topic: Workout plateau -- looking to make changes in diet
Replies: 91
Views: 8702

Why not get involved with something that will push you harder? Join a Crossfit gym? Start running 10Ks? Join an MMA gym? Join a rock climbing gym? I like hitting the weights as much as the next guy, but unless you are training for a specific goal, you're bound to hit a plateau. Whenever I get into a...
by Outside
Sun May 22, 2011 11:48 am
Forum: Investing - Theory, News & General
Topic: The Investor's Manifesto - Chapter 6
Replies: 42
Views: 2837

Hi Andrew, Since you're in the 35% tax bracket you should start focusing your energy on increasing your tax-advantaged space for bonds (in addition to your 403(b)). Look into purchasing I bonds every year, opening a 529, and using a health savings account (these choices will all depend on your perso...
by Outside
Sat May 21, 2011 11:41 am
Forum: Investing - Help with Personal Investments
Topic: SIMPLE IRA - How to convince an employer to set up a plan?
Replies: 12
Views: 1233

I know it's commonly held wisdom that Simple IRAs are easier for the employer to administer, but if you can't get around the matching issue, why not look at a 403(b)? Employee Fiduciary has been recommended on this site before, and in their FAQs they say they deal with small employers and non-profit...
by Outside
Wed May 18, 2011 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Utah 529 International options
Replies: 1
Views: 448

Thanks for the heads up Steve!
by Outside
Fri May 13, 2011 9:45 am
Forum: Investing - Help with Personal Investments
Topic: Advice to Employer on Setting up a Retirement Plan
Replies: 3
Views: 527

From what I understand the Simple IRA is the easiest to manage from an employer's standpoint. Vanguard, Fido, and Schwab all have Simple IRA options. The matching rules are different than a 401k/403b. I think it's a 100% match, up to 3% of employee salary? Plus the maximum contributions are lower th...
by Outside
Mon Apr 25, 2011 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: Secret Fears of the Super-Rich
Replies: 7
Views: 2288

Secret Fears of the Super-Rich

I wanted to pass along this interesting read in The Atlantic. Wealth can clearly create more complexity in people's lives. Like, did your spouse marry you for who you are or your money? Will you make your kids lazy if you give them an inheritance or will they resent you if you don't give them one? T...
by Outside
Fri Apr 15, 2011 10:06 am
Forum: Investing - Help with Personal Investments
Topic: USAA Roth IRA good?
Replies: 26
Views: 45433

I wish I had contributed to my Roth through my 20s when I payed very little income tax since you pay taxes on the Roth first and then it's tax free from then on. That being said, the TSP is an awesome investment program and you should use it. It has the lowest fees in the industry. Plus, once you se...
by Outside
Fri Apr 15, 2011 12:06 am
Forum: Investing - Help with Personal Investments
Topic: USAA Roth IRA good?
Replies: 26
Views: 45433

They charge $5.95 per trade. It's not free but also not expensive. Does Vanguard charge to buy funds other than vanguard funds? It's only $5.95 per trade if you have $50,000 in eligible assets with USAA, otherwise it's $8.95. While $8.95 isn't horrendous, it's also not great. Why not go with free t...
by Outside
Thu Apr 14, 2011 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: USAA Roth IRA good?
Replies: 26
Views: 45433

I agree with Heardoc and Livesoft. USAA is an excellent institution for auto, property, and umbrella insurance. But there are far better and less expensive options for your investing needs, such as Vanguard and Wellstrade.

Best of luck, you're off to a great start.
by Outside
Wed Apr 13, 2011 11:43 am
Forum: Investing - Theory, News & General
Topic: Land Poor
Replies: 56
Views: 5724

Re: Land Poor

I know quite a few folks who got left standing when the music stopped several years ago. They today own lots of real estate, which would be worth a fortune if only they could sell it...no buyers and unwilling to take huge loses in order to force a sale. Some of them are about to hit the wall in ter...
by Outside
Sun Apr 10, 2011 9:31 am
Forum: Investing - Theory, News & General
Topic: TIRA as Emergency Fund / Insurance
Replies: 27
Views: 6366

Thanks for the very thorough analysis. It's much appreciated.

Cheers,

Chris
by Outside
Thu Mar 24, 2011 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Critique this SV/EM heavy portfolio
Replies: 20
Views: 2597

To everyone telling me to focus on getting a good job, no worries, it's why I'm in college :) Just trying to sort out my investment strategy, since I already have an investment account, and I'm going to have to start investing in the future anyway; might as well start now. Actually, I would still b...
by Outside
Wed Mar 23, 2011 12:27 pm
Forum: Personal Consumer Issues
Topic: Khan Academy
Replies: 21
Views: 6623

Khan Academy

I wanted to bring Khan Academy to the attention of Boglehead's who haven't heard of it yet. I've seen it mentioned a few times before, but I figured it wouldn't hurt to mention it again. I really admire Sal Khan who while working as a hedge fund analyst took it upon himself to create video instructi...
by Outside
Mon Mar 07, 2011 11:10 am
Forum: Investing - Help with Personal Investments
Topic: I'm 25 and starting a 401k: which funds should I choose?
Replies: 18
Views: 2714

raywax wrote:Note his signature; it contains these three letters - CFA. As you apparently do not know what they stand for go to this URL: https://www.cfainstitute.org/pages/index.aspx

Ray
Excellent! Now I know to automatically trust anyone that has CFA after their name!
by Outside
Mon Mar 07, 2011 10:42 am
Forum: Investing - Theory, News & General
Topic: How much of the market is institutional money?
Replies: 20
Views: 2953

Thanks Lucio. That's a nice report.
by Outside
Fri Mar 04, 2011 4:18 pm
Forum: Investing - Theory, News & General
Topic: How much of the market is institutional money?
Replies: 20
Views: 2953

This isn't a definitive source, but it's something I found: http://www.voxeu.org/index.php?q=node/3303 Figure 1 shows that institutional owners grew from owning about 10% of equity in US publicly traded firms in the 1950s to over 60% by 2005. Thanks for the link. It's hard to believe that in 1950 o...
by Outside
Fri Mar 04, 2011 11:37 am
Forum: Investing - Theory, News & General
Topic: How much of the market is institutional money?
Replies: 20
Views: 2953

I don't think Hedge Funds and Bank operated hedge funds/prop desks count as institutional, do they? I thought institutions were the big Buy and Hold fund companies? Yeah good point. Plus what about all of those individual investors who invest through their 401k/403b/457? It's not uncommon for plans...
by Outside
Fri Mar 04, 2011 11:05 am
Forum: Investing - Theory, News & General
Topic: How much of the market is institutional money?
Replies: 20
Views: 2953

Thanks Dave. Yeah, it definitely helps to understand the landscape that we're working in.
by Outside
Fri Mar 04, 2011 11:02 am
Forum: Personal Consumer Issues
Topic: The Bogleheads Guide To Personal Success
Replies: 24
Views: 3888

IMO it all starts with locus of control. I like this quote that mlebuf posted a while back: “The best years of your life are the ones in which you decide your problems are your own. You do not blame them on your mother, the ecology, or the president. You realize that you control your own destiny.” -...
by Outside
Fri Mar 04, 2011 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Why am I such a tight-wad?
Replies: 85
Views: 11810

First start by acknowledging that being frugal is a virtue not a vice. You're not tight-wad, you're a savvy sophisticated spender. You don't like getting ripped off, and you don't allow marketing to influence your consumption. I agree with Sam I Am that your husband is lucky to have such a financial...
by Outside
Fri Mar 04, 2011 10:04 am
Forum: Investing - Theory, News & General
Topic: How much of the market is institutional money?
Replies: 20
Views: 2953

Bump.
by Outside
Fri Mar 04, 2011 2:14 am
Forum: Investing - Theory, News & General
Topic: How much of the market is institutional money?
Replies: 20
Views: 2953

How much of the market is institutional money?

I can't find a reliable source for this anywhere. My guess is that it's 70-80% and the rest are retail investors.

Thanks in advance.

-Chris
by Outside
Mon Feb 28, 2011 11:56 am
Forum: Investing - Theory, News & General
Topic: 3 minute interview I did on local Fox channel
Replies: 25
Views: 4069

Thanks Larry. Keep posting your interviews so the rest of us can benefit.
by Outside
Sun Feb 27, 2011 12:19 pm
Forum: Personal Consumer Issues
Topic: I went to Costco to buy some blueberries
Replies: 70
Views: 12116

Haha. I can't get out of there for under $200!

Although I always leave there feeling like I got a great value. And what I buy does last a very long time.
by Outside
Sun Feb 27, 2011 12:16 pm
Forum: Investing - Theory, News & General
Topic: Buffett's Annual Investor Letter is out
Replies: 87
Views: 13452

Re: Buffett's Annual Investor Letter is out

Apologize if its been posted already. http://www.berkshirehathaway.com/letters/2010ltr.pdf I always experience some cognitive dissonance at the high esteem in which Warren Buffet is held on this forum. Not even the most doctrinaire anti-active investor folks have nary a harsh word for this relentle...
by Outside
Fri Feb 25, 2011 11:29 pm
Forum: Investing - Theory, News & General
Topic: What happened today?
Replies: 16
Views: 2768

You're watching your portfolio too closely. Diversification through proper AA is essential to success, but if you're invested in "domestic stocks, european stocks, asian stocks, frontier stocks, bonds, tips, commodities, gold" then you're probably fine. Relax and focus on something else.
by Outside
Wed Feb 23, 2011 8:53 am
Forum: Personal Consumer Issues
Topic: Which site has more readers: Bogleheads or Seeking Alpha?
Replies: 13
Views: 2432

Good point bwalling. With that in mind. This pretty much represents what I see in my day-to-day life. In fact, I have yet to meet someone who thinks passive investing is the winning strategy. It's just too counter intuitive for people I guess. They think that if they work hard enough, use the best t...
by Outside
Tue Feb 22, 2011 3:42 pm
Forum: Investing - Theory, News & General
Topic: 25% of stocks are responsible for 100% of maket return
Replies: 15
Views: 2283

This doesn't strike me as unexpected or particularly interesting. Obviously when you take the top 25% of the sample out of any average, it's going to wildly skew the remaining average. Take a simple example in which a set of random numbers have values between -15 and 25. Your average value is 5. Re...
by Outside
Tue Feb 22, 2011 3:29 pm
Forum: Investing - Theory, News & General
Topic: 25% of stocks are responsible for 100% of maket return
Replies: 15
Views: 2283

This doesn't strike me as unexpected or particularly interesting. Obviously when you take the top 25% of the sample out of any average, it's going to wildly skew the remaining average. Take a simple example in which a set of random numbers have values between -15 and 25. Your average value is 5. Re...
by Outside
Tue Feb 22, 2011 2:29 pm
Forum: Investing - Theory, News & General
Topic: 25% of stocks are responsible for 100% of maket return
Replies: 15
Views: 2283

This doesn't strike me as unexpected or particularly interesting. Obviously when you take the top 25% of the sample out of any average, it's going to wildly skew the remaining average. Take a simple example in which a set of random numbers have values between -15 and 25. Your average value is 5. Re...
by Outside
Tue Feb 22, 2011 1:31 pm
Forum: Investing - Theory, News & General
Topic: 25% of stocks are responsible for 100% of maket return
Replies: 15
Views: 2283

Re: 25% of stocks are responsible for 100% of maket return

Food for thought: IF you believe there's a SmB (Small minus Big) and HmL (High [book-to-price ratio] minus Low) premia, are these top performers mostly/regularly Small Cap Value? Does overweighing THAT way - or concentrating that way - make the most sense? :undecided I completely agree. Tilting to ...
by Outside
Tue Feb 22, 2011 12:36 pm
Forum: Investing - Theory, News & General
Topic: 25% of stocks are responsible for 100% of maket return
Replies: 15
Views: 2283

jh wrote:I would think most companies are profitable.
It's my understanding that earnings growth drives capital appreciation, not just profitability.
by Outside
Tue Feb 22, 2011 12:11 pm
Forum: Investing - Theory, News & General
Topic: 25% of stocks are responsible for 100% of maket return
Replies: 15
Views: 2283

25% of stocks are responsible for 100% of maket return

I recently stumbled upon this article from Dr. Bernstein in March of '09. Here's the most compelling part: In fact, researchers at the investment management firm Dimensional Fund Advisors found that from 1980 to 2008, the top-performing 25% of stocks were responsible for all the gains in the broad m...
by Outside
Mon Feb 21, 2011 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring IRA to Vanguard - Should I plunge or DCA
Replies: 7
Views: 1066

Where are all the folks who asked this same question yesterday and got good answers? Why don't they respond to this post? Good point. Each one teach one. I didn't ask this question yesterday, but I have received much valuable wisdom from this forum (mostly through searching past threads though) and...
by Outside
Mon Feb 21, 2011 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: asset protection
Replies: 66
Views: 9777

by Outside
Mon Feb 21, 2011 6:41 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring IRA to Vanguard - Should I plunge or DCA
Replies: 7
Views: 1066

If I had a meaningful lump sum to invest I'd seriously evaluate Value Averaging. William Bernstein speaks of it positively and wrote the forward for the reprint of Michael Edleson's Value Averaging: The Safe and Easy Strategy for Higher Investment Returns.

http://www.efficientfrontier.com/va.htm
by Outside
Mon Feb 21, 2011 6:13 pm
Forum: Investing - Theory, News & General
Topic: VEA vs. VPL+VGK
Replies: 14
Views: 3627

Re: VEA vs. VPL+VGK

It seems if you simply hold VEA, the yield is 2.44%, whereas if you hold 50/50 VPL+VGK, you would get a yield of (3.94% x .5) + (4.56% x .5) = 4.25% Of course, you could vary the percentages to more closely match VEA (or weight it completely differently if you wish to tilt towards one region or the...