Search found 1581 matches

by fortyofforty
Sun Oct 13, 2019 7:22 pm
Forum: Investing - Theory, News & General
Topic: Vanguard: the case for global equity investing
Replies: 155
Views: 10152

Re: Vanguard: the case for global equity investing

It seems that investing domestic only or globally each requires a prediction of future returns. On the one hand, international equities have underperformed lately, so many expect them to turn things around soon and begin a run of outperformance compared with domestic equities. But nobody knows nothi...
by fortyofforty
Tue Oct 08, 2019 7:55 pm
Forum: Investing - Theory, News & General
Topic: Press Release 10/1/19--Vanguard Adds To Its Active Lineup With Launch Of International Core Stock Fund
Replies: 68
Views: 6804

Re: Press Release 10/1/19--Vanguard Adds To Its Active Lineup With Launch Of International Core Stock Fund

I've reviewed the prospectus and determined it's not for me. The expense ratio is too high, there are other options to fill this portfolio spot, it's another Wellington Management Company fund, and the description of how stocks will be selected is the same boilerplate that appears in just about ever...
by fortyofforty
Mon Oct 07, 2019 5:50 pm
Forum: Investing - Theory, News & General
Topic: Is Small Value Overbought?
Replies: 10
Views: 1361

Re: Is Small Value Overbought?

Small cap value is so overbought it is now large cap growth. :mrgreen:
by fortyofforty
Sun Oct 06, 2019 1:19 pm
Forum: Investing - Theory, News & General
Topic: How does a global fund allocate stocks?
Replies: 10
Views: 814

Re: How does a global fund allocate stocks?

Hello Guys, I am relatively new to this, so apologies if this seems a basic question to you more seasoned investors. The question is in regard to Global All World tracking funds/ETF I am curious to how the stocks are selected for such investments. For instance the Vanguard FTSE All-World UCITS ETF ...
by fortyofforty
Sun Oct 06, 2019 7:07 am
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 218
Views: 45265

Re: How Do You Like My New 'Doo

A few random thoughts: It's much more involved buying and selling individual stocks than mutual funds or ETFs. You have to research and decide what and when to buy, and how much. Then, you have to either continually track that individual company and its stock several times a year, or just stick it a...
by fortyofforty
Sat Oct 05, 2019 12:55 pm
Forum: Investing - Theory, News & General
Topic: Why does dividend investing not work?
Replies: 174
Views: 22179

Re: Why does dividend investing not work?

I like Clements's final thought:
[Y]ou should probably stick with index funds.
by fortyofforty
Fri Oct 04, 2019 4:53 pm
Forum: Investing - Theory, News & General
Topic: Press Release 10/1/19--Vanguard Adds To Its Active Lineup With Launch Of International Core Stock Fund
Replies: 68
Views: 6804

Re: Press Release 10/1/19--Vanguard Adds To Its Active Lineup With Launch Of International Core Stock Fund

Responding to some earlier posts... What gets me is the emphasis here on "market beating returns." For a fund that has no track record. It's modified by the weasel-word "seeking" but that pitch is SO unBogle-ish. OK, so I'm going to be a bit of a devil's advocate here (or some might say unBogle's a...
by fortyofforty
Fri Oct 04, 2019 6:42 am
Forum: Investing - Theory, News & General
Topic: Press Release 10/1/19--Vanguard Adds To Its Active Lineup With Launch Of International Core Stock Fund
Replies: 68
Views: 6804

Re: Press Release 10/1/19--Vanguard Adds To Its Active Lineup With Launch Of International Core Stock Fund

Vanguard continues it's long tradition of very strong support for active funds. Unfortunate that some people misunderstand Vanguard (and Bogle) as a purely Index fund company. The Boglehead obsession with simplicity often oversimplifies the man himself. Unfortunate that some Bogleheads misunderstan...
by fortyofforty
Thu Oct 03, 2019 9:09 pm
Forum: Investing - Theory, News & General
Topic: Press Release 10/1/19--Vanguard Adds To Its Active Lineup With Launch Of International Core Stock Fund
Replies: 68
Views: 6804

Re: Press Release 10/1/19--Vanguard Adds To Its Active Lineup With Launch Of International Core Stock Fund

[Title was "Vanguard Expands Active Roster With Proposed International Core Stock Fund" The fund has been launched, see below. --admin LadyGeek] Press Release by Vanguard 7/18/2019 I didn't see anything on the forum regarding this https://pressroom.vanguard.com/news/Press-Release-Vanguard-Files-for...
by fortyofforty
Wed Oct 02, 2019 8:57 pm
Forum: Investing - Theory, News & General
Topic: Press Release 10/1/19--Vanguard Adds To Its Active Lineup With Launch Of International Core Stock Fund
Replies: 68
Views: 6804

Re: Vanguard Adds To Its Active Lineup With Launch Of International Core Stock Fund

Bogleheads: It is unfortunate that Vanguard is promoting a new international managed mutual fund. According to the SPIVA U.S. Year-End 2018 Scorecard, "89.83% of International Funds were outperformed by their benchmark index." Knowledgeable investors use broad market index funds. https://www.spglob...
by fortyofforty
Sun Sep 29, 2019 4:52 pm
Forum: Investing - Theory, News & General
Topic: "The Simple Magic of Investing in a Three-Fund Portfolio"
Replies: 22
Views: 3796

Re: "The Simple Magic of Investing in a Three-Fund Portfolio"

With due respect for the 3-fund portfolio, I just wish Vanguard offered a 2-fund balanced index fund portfolio in a 40/60 ratio instead of the 60/40 ratio. At our average age of 83 the 60/40 ratio is too high in our minds. We have no desire for international stock funds (or international bond funds...
by fortyofforty
Sat Sep 21, 2019 3:05 pm
Forum: Investing - Theory, News & General
Topic: Why does dividend investing not work?
Replies: 174
Views: 22179

Re: Why does dividend investing not work?

I think "dividend investing" does work. The same is true for "value investing" and "growth investing". The market has phases and cycles. If you choose to invest in a segment of the stock market, then you've got to ride the cycles of underperformance and outperformance of any particular system. Buy v...
by fortyofforty
Thu Sep 19, 2019 9:06 pm
Forum: Investing - Theory, News & General
Topic: Is the 60/40 portfolio allocation strategy being killed?
Replies: 116
Views: 10290

Re: Is the 60/40 portfolio allocation strategy being killed?

jdilla1107 wrote:
Thu Sep 19, 2019 9:49 am
I am 70/30 which allows me to ignore all of the debates and articles about 60/40. :twisted:
After the next correction you'll be 60/40. :P
by fortyofforty
Wed Sep 18, 2019 8:35 pm
Forum: Investing - Theory, News & General
Topic: Is the 60/40 portfolio allocation strategy being killed?
Replies: 116
Views: 10290

Re: Is the 60/40 portfolio allocation strategy being killed?

There are discussions worth having here, such as if a total bond market portfolio will be better going forward than intermediate term Treasuries, or if value stocks will outperform growth stocks over the coming decade. The debate over active versus passive management of stock portfolios is over. It'...
by fortyofforty
Sat Sep 14, 2019 7:28 am
Forum: Investing - Theory, News & General
Topic: A time to EVALUATE your jitters
Replies: 335
Views: 307402

Re: A time to EVALUATE your jitters

i am feeling the jitters -- thinking I should sell for profit some of my stocks shares that are in taxable acct. Also have contra fund in taxable acct (cause I didn't know better back then and there is cap gains) If the market dives, I don't have much cash to add to it. stocks i have in taxable are...
by fortyofforty
Wed Sep 11, 2019 5:55 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: 3% is the new 4%
Replies: 662
Views: 49554

Re: Larry Swedroe: 3% is the new 4%

Personally, I wouldn't consider retiring with a 4% withdrawal rate. But I am shooting for an early retirement age and 40-50 years of retirement if I'm lucky. Currently debating between 2.5% and 3% withdrawal, but haven't decided. I've got maybe 10 more years to figure it out. That makes sense, sinc...
by fortyofforty
Tue Sep 10, 2019 5:56 am
Forum: Investing - Theory, News & General
Topic: Boglehead Financial Literacy Certification?
Replies: 18
Views: 2250

Re: Boglehead Financial Literacy Certification?

David Jay wrote:
Mon Sep 09, 2019 10:49 pm
joe8d wrote:
Mon Sep 09, 2019 8:05 pm
I've been doing these things myself even to the point writing my own Obit.
Turns out you really were a great scholar, athlete, executive, philanthropist and statesman. :happy
And modest. Don't forget modest.
by fortyofforty
Sat Sep 07, 2019 5:50 pm
Forum: Investing - Theory, News & General
Topic: "The Callan Periodic Table of Investment Returns"
Replies: 33
Views: 3569

Re: "The Callan Periodic Table of Investment Returns"

montanagirl wrote:
Sat Sep 07, 2019 12:16 pm
What I get out of this is, if bonds or cash is on top it's not that it's doing so well but that everything else is doing so bad. :|
Very true. Hence the benefit of diversification.
by fortyofforty
Sat Sep 07, 2019 3:06 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Financial Literacy Certification?
Replies: 18
Views: 2250

Re: Boglehead Financial Literacy Certification?

Years ago, Morningstar had a series of "classes" on investing, laid out like a college curriculum, if I remember correctly. I believe I even printed them out to read at my leisure. I found that series very helpful. Perhaps something along those lines would be good. By chance is this the series of c...
by fortyofforty
Sat Sep 07, 2019 7:23 am
Forum: Investing - Theory, News & General
Topic: Boglehead Financial Literacy Certification?
Replies: 18
Views: 2250

Re: Boglehead Financial Literacy Certification?

Years ago, Morningstar had a series of "classes" on investing, laid out like a college curriculum, if I remember correctly. I believe I even printed them out to read at my leisure. I found that series very helpful. Perhaps something along those lines would be good.
by fortyofforty
Thu Sep 05, 2019 7:56 pm
Forum: Investing - Theory, News & General
Topic: Best of Bogleheads - your #1 takeaway
Replies: 151
Views: 14683

Re: Best of Bogleheads - your #1 takeaway

As was stated before: Nobody knows nothin'. Every time I think I do, I am humbled by Mr. Market. (Jack mentioned that in at least one of his books, so I had read it there first.) From the website, tax loss harvesting has saved me a lot of real money in taxes. ETA: Also "backdoor" Roth (thanks for th...
by fortyofforty
Mon Sep 02, 2019 1:17 pm
Forum: Investing - Theory, News & General
Topic: Portfolio Strategy
Replies: 28
Views: 3542

Re: Portfolio Strategy

Looking forward to the release, Rick. I've enjoyed your other books, which reminds me: I should reread your All About Asset Allocation again, as it's been a few years. [To those who haven't had the pleasure of meeting Rick, he's one of the most down-to-earth, patient, approachable guys in the busine...
by fortyofforty
Sat Aug 31, 2019 7:51 am
Forum: Investing - Theory, News & General
Topic: Vanguard Personal Advisor
Replies: 28
Views: 1929

Re: Vanguard Personal Advisor

Just got this popup: MEET YOUR RETIREMENT GOALS Partner with a Vanguard advisor Our advisors have your best interests in mind, and they're dedicated to helping you reach your financial goals. You can count on us to help give you the best chance for investment success. At least it's better than the "...
by fortyofforty
Thu Aug 29, 2019 6:12 pm
Forum: Investing - Theory, News & General
Topic: "The Importance of Simplicity"
Replies: 24
Views: 2441

Re: "The Importance of Simplicity"

abuss368 wrote:
Thu Aug 29, 2019 2:24 pm
Warren Buffett's Words of Wisdom: “If a statue is ever erected to honor the person who has done the most for American investors, the hands down choice should be Jack Bogle.”
Love that quote!
Until one is erected, we are Jack's statue.
by fortyofforty
Thu Aug 29, 2019 5:39 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 355
Views: 43608

Re: How Bad was 2008, really?

Nothing worse than the timing of the launch of Wellington, though, right?
by fortyofforty
Thu Aug 29, 2019 5:36 pm
Forum: Personal Investments
Topic: Need help with my 401K portfolio
Replies: 6
Views: 379

Re: Need help with my 401K portfolio

I like your thinking about the ETFs. Sad that there is no low-expense ratio S&P 500 or Total Market fund. That being the case, I think you could sell everything, accumulate the cash, and buy a 60/40 mix of VTI and BND. Because of the fee, maybe limit your future purchases to once per annum, to alloc...
by fortyofforty
Thu Aug 29, 2019 5:19 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 355
Views: 43608

Re: How Bad was 2008, really?

For me, September 2008 was one of the darkest times in my life....in my mid-30's at the time. Lost my job (as a breadwinner), Unleaded gas shot up to $4.00/gallon here in Charlotte (due to Hurricane Ike hitting the gulf, and the supply lines up to the carolinas were blocked for awhile....). Most ga...
by fortyofforty
Thu Aug 29, 2019 4:09 pm
Forum: Investing - Theory, News & General
Topic: "The Best Diversifiers For Your Equity Portfolio"
Replies: 126
Views: 10720

Re: High Cost and Complexity or Low Cost and Simplicity?

Until this one, I respected your posts. However, it appears that you do not know much about Mr. Bogle and his investing philosophy. If you will PM me your mailing address I would like to send you a copy of one of his books. Do you have the one where he recommends investors sell the funds that perfo...
by fortyofforty
Wed Aug 28, 2019 7:44 pm
Forum: Investing - Theory, News & General
Topic: A theory of one's general investing mindset: 'Good enough' or 'Optimize'
Replies: 297
Views: 12694

Re: A theory of one's general investing mindset: 'Good enough' or 'Optimize'

Simplicity is the master key to financial success. I have experienced this over the years. Mr. Bogle is right! Mr. Bogle was right, but not much fun . The alchemists optimizers have much more fun tinkering with their portfolios than the good-enoughers. :beer I hear you but for us it is different. W...
by fortyofforty
Wed Aug 28, 2019 7:19 pm
Forum: Investing - Theory, News & General
Topic: A theory of one's general investing mindset: 'Good enough' or 'Optimize'
Replies: 297
Views: 12694

Re: A theory of one's general investing mindset: 'Good enough' or 'Optimize'

abuss368 wrote:
Wed Aug 28, 2019 6:30 pm
Simplicity is the master key to financial success. I have experienced this over the years.

Mr. Bogle is right!
Mr. Bogle was right, but not much fun. The alchemists optimizers have much more fun tinkering with their portfolios than the good-enoughers. :beer
by fortyofforty
Tue Aug 27, 2019 5:40 pm
Forum: Investing - Theory, News & General
Topic: A theory of one's general investing mindset: 'Good enough' or 'Optimize'
Replies: 297
Views: 12694

Re: A theory of one's general investing mindset: 'Good enough' or 'Optimize'

One thing that hurts hedge funds and active mutual funds is size. As a fund gets larger, they have less options available to them. Once you buy a certain percentage of a stock you run into issues. A small investor can buy pretty much anything and their buying/selling isn't going to move the market ...
by fortyofforty
Tue Aug 27, 2019 6:32 am
Forum: Investing - Theory, News & General
Topic: A theory of one's general investing mindset: 'Good enough' or 'Optimize'
Replies: 297
Views: 12694

Re: A theory of one's general investing mindset: 'Good enough' or 'Optimize'

It's true that we cannot determine what is optimal a priori , but I believe that most investors with an optimization strategy know this. Such investors simply believe that, on the basis of the evidence, that a better portfolio for them than something like the 3-fund can likely be identified a prior...
by fortyofforty
Mon Aug 26, 2019 7:48 pm
Forum: Investing - Theory, News & General
Topic: A theory of one's general investing mindset: 'Good enough' or 'Optimize'
Replies: 297
Views: 12694

Re: A theory of one's general investing mindset: 'Good enough' or 'Optimize'

Well done, willthrill81. Very interesting breakdown. I will choose the market portfolio over the hopes and dreams of so-called "optimal" portfolios any day. What is optimal can only be determined post facto . What is clear is that the market weight equity portfolio will never be the worst combinatio...
by fortyofforty
Sun Aug 25, 2019 2:31 pm
Forum: Investing - Theory, News & General
Topic: Is the S&P 500 good enough?
Replies: 48
Views: 5986

Re: Is the S&P 500 good enough?

I agree with the advice given about adding the extended market, unless you don't want to bother with the added work once in a while to rebalance multiple equity funds. It's amazing to realize that, with just those few funds, the company has provided employees with the ability to own every stock in t...
by fortyofforty
Thu Aug 22, 2019 10:55 am
Forum: Investing - Theory, News & General
Topic: "The Best Diversifiers For Your Equity Portfolio"
Replies: 126
Views: 10720

Re: "The Best Diversifiers For Your Equity Portfolio"

I think I will simply let the market decide for me, in terms of bond maturities. The bond market is dominated by large players that have much different objectives than you and me. I don't care to have a large life insurance company with obligations out 30, 40, 50 years to decide my bond portfolio f...
by fortyofforty
Thu Aug 22, 2019 8:35 am
Forum: Investing - Theory, News & General
Topic: "The Best Diversifiers For Your Equity Portfolio"
Replies: 126
Views: 10720

Re: "The Best Diversifiers For Your Equity Portfolio"

We often think that diversification is a de-risking strategy, or at least a strategy to deliver better risk-adjusted returns. And what we're looking for is a negative correlation coefficient. I don't know if a negative correlation is a de-risking strategy or a deliverer of better risk-adjusted retu...
by fortyofforty
Wed Aug 21, 2019 5:58 am
Forum: Investing - Theory, News & General
Topic: Diversification Regret Index
Replies: 161
Views: 20069

Re: Diversification Regret

Size is a continuous scale, and moving from biggest to medium-big is still a move TOWARD small. Fair enough, although using such language could be very confusing to those who think 'tilting toward small-cap' means actually owning small-cap companies, which equal-weighting of the S&P 500 does not do...
by fortyofforty
Tue Aug 20, 2019 8:56 pm
Forum: Investing - Theory, News & General
Topic: "The Best Diversifiers For Your Equity Portfolio"
Replies: 126
Views: 10720

Re: "The Best Diversifiers For Your Equity Portfolio"

Thank you once again, Taylor. It's old advice, and still relevant. Sometimes we trip ourselves up trying to find the "best" thing to solve a perceived need, instead of choosing simplicity.
by fortyofforty
Tue Aug 20, 2019 3:00 pm
Forum: Investing - Theory, News & General
Topic: Diversification Regret Index
Replies: 161
Views: 20069

Re: Diversification Regret

Just applying your logic. No, you’re not. Whatever that is, it has nothing to do with either me or logic. I was trying to explain why equally weighting all 500 stocks in the S&P 500 tilts the portfolio toward small caps relative to market cap weighting, not suggesting that such a strategy was eithe...
by fortyofforty
Tue Aug 20, 2019 10:44 am
Forum: Investing - Theory, News & General
Topic: Diversification Regret Index
Replies: 161
Views: 20069

Re: Diversification Regret

Size is a continuous scale, and moving from biggest to medium-big is still a move TOWARD small. Fair enough, although using such language could be very confusing to those who think 'tilting toward small-cap' means actually owning small-cap companies, which equal-weighting of the S&P 500 does not do...
by fortyofforty
Tue Aug 20, 2019 6:23 am
Forum: Investing - Theory, News & General
Topic: Diversification Regret Index
Replies: 161
Views: 20069

Re: Diversification Regret

Size is a continuous scale, and moving from biggest to medium-big is still a move TOWARD small. Fair enough, although using such language could be very confusing to those who think 'tilting toward small-cap' means actually owning small-cap companies, which equal-weighting of the S&P 500 does not do...
by fortyofforty
Mon Aug 19, 2019 3:55 pm
Forum: Investing - Theory, News & General
Topic: Diversification Regret Index
Replies: 161
Views: 20069

Re: Diversification Regret

PS. equal-weighting index funds aren't terribly optimal in terms of implementation, but... I find the underlying logic quite intriguing, if one were to push my reasoning to its logical conclusion. Seems a little too extreme though. Something in-between equal-weighting and cap-weighting might get my...
by fortyofforty
Mon Aug 19, 2019 3:12 pm
Forum: Investing - Theory, News & General
Topic: Diversification Regret Index
Replies: 161
Views: 20069

Re: Diversification Regret

I certainly don't think that factor diversification is necessary to be adequately diversified, but the data I've seen strongly suggests to me that factor diversification has improved a portfolio's diversification in terms of introducing additional, less than perfectly correlated return drivers. I d...
by fortyofforty
Sat Aug 17, 2019 6:17 am
Forum: Investing - Theory, News & General
Topic: The value of international stocks, in pictures
Replies: 74
Views: 13722

Re: The value of international stocks, in pictures

These are all historical, backwards-looking results that have limited predictive value. As has been said before, the rear view mirror is much clearer than the windshield. I still invest internationally, despite recent performance, in the belief that more diversification will pay off in the long run....
by fortyofforty
Tue Aug 13, 2019 9:26 am
Forum: Investing - Theory, News & General
Topic: The Risk of International Bond Investing
Replies: 24
Views: 4253

Re: The Risk of International Bond Investing

One would tend to believe increasing diversification decreases overall risk, whether in equities or debt. One would also tend to believe that higher risks should be rewarded with higher returns, over time, whether in equities or debt. A problem here is that a US investor investing dollars in a Euro...
by fortyofforty
Tue Aug 13, 2019 6:29 am
Forum: Investing - Theory, News & General
Topic: The Risk of International Bond Investing
Replies: 24
Views: 4253

Re: The Risk of International Bond Investing

One would tend to believe increasing diversification decreases overall risk, whether in equities or debt. One would also tend to believe that higher risks should be rewarded with higher returns, over time, whether in equities or debt.
by fortyofforty
Sat Aug 10, 2019 5:57 pm
Forum: Investing - Theory, News & General
Topic: Why do dividends still exist?
Replies: 204
Views: 11987

Re: Why do dividends still exist?

I recall reading, many years ago, that paying dividends tends to instill some financial discipline in management, in that it prevents you from throwing everything away in ill advised acquisitions, investments and bonuses. They have to prioritize. How applicable that may still be I don't know. Still...
by fortyofforty
Sat Aug 10, 2019 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: No pay increase but increase in responsibility
Replies: 110
Views: 8196

Re: No pay increase but increase in responsibility

I wanted to get some feedback on this subject. At a recent weekly meeting, it was alluded to that myself and another person will soon be asked to take on alot of our direct bosses responsibilities since we are incredibly busy and his workload is more than he can handle. I have a pretty good feeling...
by fortyofforty
Sat Aug 10, 2019 6:34 am
Forum: Investing - Theory, News & General
Topic: Why do dividends still exist?
Replies: 204
Views: 11987

Re: Why do dividends still exist?

That's right. Warren Buffet doesn't like paying dividends but he loves getting dividends. I read a book about WB. I have not only read a book about Warren Buffet, but I have read books, his stockholder letters, and academic articles. He does not love getting dividends. What he loves is companies wi...
by fortyofforty
Sat Aug 10, 2019 6:23 am
Forum: Investing - Theory, News & General
Topic: Why do dividends still exist?
Replies: 204
Views: 11987

Re: Why do dividends still exist?

That's right. Warren Buffet doesn't like paying dividends but he loves getting dividends. I read a book about WB. I have not only read a book about Warren Buffet, but I have read books, his stockholder letters, and academic articles. He does not love getting dividends. What he loves is companies wi...