Search found 16 matches

by gc527
Sun Mar 30, 2014 11:13 am
Forum: Investing - Theory, News & General
Topic: Lazy portfolios: no returns or risk information
Replies: 135
Views: 12306

Re: Lazy portfolios: no returns or risk information

As Swedroe puts it (and many here are saying) -- just because stocks or certain classes of assets have performed well in the past doesn't mean you will be compensated for your risk to that asset in the future. There have been many stretches over the last century when different asset classes have NOT...
by gc527
Thu Mar 13, 2014 3:53 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Tilting
Replies: 84
Views: 11345

Re: "Buy the haystack" -- Jack Bogle quote

Well, except that I would say this is a caricature of what people who look at things like factor loads, etc., are doing. I think that the more sophisticated investors who get into factor loads and regressions, etc., might be wasting time like YDNAL says, but often they are much more aware, than the...
by gc527
Thu Jan 31, 2013 10:14 pm
Forum: Investing - Theory, News & General
Topic: Help Understanding Swedroe's Minimizing Fat Tails Portfolio
Replies: 49
Views: 7893

Re: Help Understanding Swedroe's Minimizing Fat Tails Portfo

gc527 Hope this helps The smaller the market cap and the higher the BtM or lower the P/E the higher the expected return of the fund. The higher the expected return the less beta exposure you need to get the same expected return, and that cuts tail risks. And of course the reverse is true.So all els...
by gc527
Wed Jan 30, 2013 5:21 pm
Forum: Investing - Theory, News & General
Topic: Help Understanding Swedroe's Minimizing Fat Tails Portfolio
Replies: 49
Views: 7893

Re: Help Understanding Swedroe's Minimizing Fat Tails Portfo

@baw703916, that explains it rather well – even if theoretical! Thanks. @Ketawa, I am impressed that you have a plan and executing on the plan at this young age. Good luck! I have a few more portfolio construction questions for Larry and those who understand the Larry’s fat tail portfolio: ⋅&nb...
by gc527
Tue Jan 29, 2013 8:06 pm
Forum: Investing - Theory, News & General
Topic: Help Understanding Swedroe's Minimizing Fat Tails Portfolio
Replies: 49
Views: 7893

Re: Help Understanding Swedroe's Minimizing Fat Tails Portfo

I have been very interested in this portfolio as it makes a lot of sense to me. However, I may be misunderstanding the 3-factor model. If you are focused primarily on value and small risks premiums, are you adequately covered for beta (market) risk? Or does the small/value provide a proxy for the be...
by gc527
Sat Jan 19, 2013 10:07 pm
Forum: Investing - Theory, News & General
Topic: Update on a Swedroe-type portfolio
Replies: 268
Views: 74442

Re: Update on a Swedroe-type portfolio

Brad, I am looking for a portfolio engine that can help provide the returns (for both backtest and tracking purposes) based on allocation as you have shown in the table. Can you let me know what software or platform you use to generate these? Thanks in advance.
by gc527
Sun Feb 12, 2012 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Proving it to yourself: index funds vs. individual stocks
Replies: 57
Views: 5817

Re: Proving it to yourself: index funds vs. individual stoc

Absolutely agree with Taylor. You really need to understand the company's business drivers and the headwinds they may face. And, gleaning this from financial statements alone is impossible. Sometimes even the insiders are surprised with turn of events let alone outsiders!
by gc527
Sun Feb 12, 2012 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: First Time Boglehead Portfolio Review, IPO situation
Replies: 10
Views: 839

Re: First Time Boglehead Portfolio Review, IPO situation

Congratulations. I was in the same scenario sometime back. From my experience, it is important that you sell a set quantity of your options every quarter (based on the vested portion) when the window opens. Don't overthink it! Just sell it at pre-set time/date. And, move this to a diversified index ...
by gc527
Sun Feb 12, 2012 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Proving it to yourself: index funds vs. individual stocks
Replies: 57
Views: 5817

Re: Proving it to yourself: index funds vs. individual stoc

I have also been a passive index investor but with a very large portion (50%) of my portfolio in individual stocks till very recently. I also buy and hold for a period of multiple months or years till the investment thesis plays out. Overall, the overall individual stocks portion has performed bette...
by gc527
Thu Feb 09, 2012 7:02 pm
Forum: Investing - Theory, News & General
Topic: TBM vs. Treasuries
Replies: 19
Views: 1498

Re: TBM vs. Treasuries

If our government defaults, then we have much bigger problem!

I did read through the Wiki and I understand the mechanics of the bonds and how each of these instruments work. My issue is taking this to a higher level so I can put this into action in terms of asset allocation.
by gc527
Thu Feb 09, 2012 5:04 pm
Forum: Investing - Theory, News & General
Topic: TBM vs. Treasuries
Replies: 19
Views: 1498

Re: TBM vs. Treasuries

Thanks for the replies. The reason I ask is because I don't understand bond funds much. And, I have found that if I don't understand what I am doing, I typically second guess myself which will definitely get in the way of staying the course.
by gc527
Thu Feb 09, 2012 1:06 pm
Forum: Investing - Theory, News & General
Topic: TBM vs. Treasuries
Replies: 19
Views: 1498

TBM vs. Treasuries

As part of the asset allocation, why would anyone that's not in retirement or close to retirement put their money in TBM? I understand the income requirements of retirees who probably have a larger % of their assets in Bonds and would like to diversify and improve their income stream through variety...
by gc527
Sun Feb 05, 2012 11:21 am
Forum: Investing - Help with Personal Investments
Topic: Slice/dice for bond allocation?
Replies: 8
Views: 1025

Re: Slice/dice for bond allocation?

@Kevin, thanks for your very thoughtful response. My portion of the fixed income is 40% at this time. So, I am going to stop at investment grade (mostly treasuries) till such time when my bond portion of the portfolio is much higher. But, I do feel I would like to get exposure to differing durations...
by gc527
Sun Feb 05, 2012 1:57 am
Forum: Investing - Help with Personal Investments
Topic: Slice/dice for bond allocation?
Replies: 8
Views: 1025

Re: Slice/dice for bond allocation?

Thanks for all the replies. So, is there any reason one should have long-term bonds as part of the diversified bond-allocation? If not, what would be the reasoning? Is it that LT bonds are more susceptible to interest rate risk and so one should opt for equity if they need more risk? Or is it due to...
by gc527
Sat Feb 04, 2012 12:17 pm
Forum: Investing - Help with Personal Investments
Topic: Slice/dice for bond allocation?
Replies: 8
Views: 1025

Slice/dice for bond allocation?

Hi, I am noob here. So far, I have been focused primarily on stock pickings. While I have been reasonably successful in terms of returns, the variability has obviously been very high. As my funds have grown to 6 figure amount, it is no surprise that I am finding it hard to stomach this variability n...