Search found 5841 matches

by JoMoney
Mon Oct 22, 2018 12:26 am
Forum: Investing - Theory, News & General
Topic: 50 Stocks Enough to Diversify Idiosyncratic Risk?
Replies: 20
Views: 1151

Re: 50 Stocks Enough to Diversify Idiosyncratic Risk?

A fun test of market efficiency, would be to see if you could consistently pick a diversified portfolio of losing stocks... ok, maybe that wouldn't be "fun" ;) The pessimists are doing well in this year's hedge fund contest. So far. Consistency at doing that would be the trick. I wonder if there's ...
by JoMoney
Mon Oct 22, 2018 12:15 am
Forum: Investing - Theory, News & General
Topic: 50 Stocks Enough to Diversify Idiosyncratic Risk?
Replies: 20
Views: 1151

Re: 50 Stocks Enough to Diversify Idiosyncratic Risk?

... So it appears that shorter term the experts won and that longer term the darts won. Six months, in my view is not long enough to determine much of anything. The individual stocks held in my portfolio have an average holding period of more than five years. Doing that, I have almost matched the U...
by JoMoney
Sun Oct 21, 2018 11:55 pm
Forum: Investing - Help with Personal Investments
Topic: Feedback requested on approximating total stock market
Replies: 7
Views: 483

Re: Feedback requested on approximating total stock market

I would think those are all viable substitutes to represent the 'Total Market'... including, as cheese_breath mentioned, just using a S&P 500 fund. You're not likely to match some other fund perfectly, there are minor differences even among various 'Total Market' indexes like the Russell 3000, WIlsh...
by JoMoney
Sun Oct 21, 2018 11:42 pm
Forum: Investing - Theory, News & General
Topic: 50 Stocks Enough to Diversify Idiosyncratic Risk?
Replies: 20
Views: 1151

Re: 50 Stocks Enough to Diversify Idiosyncratic Risk?

How do you pick the 20 or 50 stocks? I wonder if anyone has run the numbers of the return over 30 years of the worst performing 50 stocks of the S&P? The results of "monkeys throwing darts" at a list of stocks implies that it probably doesn't matter much how you select them, provided they're suffic...
by JoMoney
Sun Oct 21, 2018 11:12 pm
Forum: Investing - Theory, News & General
Topic: 50 Stocks Enough to Diversify Idiosyncratic Risk?
Replies: 20
Views: 1151

Re: 50 Stocks Enough to Diversify Idiosyncratic Risk?

The smaller the market cap of the stocks, more are needed. The Dow 30 has managed just fine with 30 large cap stocks. If you owned 50 large caps, you probably have something close to half the market covered by market cap, and they would predominately be the larger, well established, lower risk compa...
by JoMoney
Sun Oct 21, 2018 3:05 pm
Forum: Personal Consumer Issues
Topic: Why are Carbon Offset Credits so cheap?
Replies: 39
Views: 2115

Re: Why are Carbon Offset Credits so cheap?

This is a 2010 article, not sure if the regulations are better now. ...the business of carbon offsets is close to a billion dollar industry with nearly no regulation, enforcement, measurements or even proof that carbon offsets are doing anything but filling the coffers of middle men and adding extr...
by JoMoney
Sun Oct 21, 2018 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Stealing ID using only name and SSN
Replies: 16
Views: 1220

Re: Stealing ID using only name and SSN

Someone walked into a Best Buy and opened an account with Verizon in my name with just that info plus my address. Got two brand new iPhones on credit which I assume they resold immediately. Verizon told me they are supposed to check IDs but could have probably done it just with ssn and address. (I ...
by JoMoney
Sun Oct 21, 2018 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Where would you go for financial guidance if you win the Megamillions?
Replies: 148
Views: 11913

Re: Where would you go for financial guidance if you win the Megamillions?

Yes, if you gave the money to a qualified charity, you wouldn't owe taxes on the amount you gave away. I don't know the terms and conditions of the lottery, but if they allowed for multiple people to claim the same ticket, you could probably give a fractional share to anybody and they (rather than y...
by JoMoney
Sun Oct 21, 2018 2:10 pm
Forum: Personal Consumer Issues
Topic: Why Purchase an Automobile using Premium Gasoline?
Replies: 68
Views: 2664

Re: Why Purchase an Automobile using Premium Gasoline?

Why does someone buy a Corvette ?

Why does Colorado sell 85 octane ?

Do people believe some brands use 'special' detergents in their gas that is worth paying a premium on?
by JoMoney
Sun Oct 21, 2018 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Berkshire A Paper stock certificate
Replies: 10
Views: 761

Re: Berkshire A Paper stock certificate

If the certificates were "found", implying someone lost or forgot about them, they might not even be valid. Seems like an odd thing for someone to lose if it was still worth something other than being a fancy piece of paper. The ownership could have been transferred electronically, or replacement ce...
by JoMoney
Sun Oct 21, 2018 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Stealing ID using only name and SSN
Replies: 16
Views: 1220

Re: Stealing ID using only name and SSN

If someone wants to steal your identity, all they need is your name. Someone who is determined to get your SSN can get that other ways, especially if they're willing to break the law to do it. Getting your current and prior addresses, phones numbers, etc... is even easier. Check your credit reports ...
by JoMoney
Sun Oct 21, 2018 1:07 pm
Forum: Investing - Theory, News & General
Topic: US Large Cap Value - valuation?
Replies: 16
Views: 909

Re: US Large Cap Value - valuation?

If you use dividend stocks as a proxy for 'value stocks', the difference in valuation multiples between a company that can reinvest intrinsically and have high-growth vs a high-dividend company should have higher valuation spreads when interest rates are lower. Imagine a zero-coupon bond that compou...
by JoMoney
Sun Oct 21, 2018 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: Berkshire A Paper stock certificate
Replies: 10
Views: 761

Re: Berkshire A Paper stock certificate

I found this: What is a 'Bearer Share' A bearer share is an equity security wholly owned by whoever holds the physical stock certificate, thus the name "bearer" share. The issuing firm neither registers the owner of the stock nor tracks transfers of ownership; the company disperses dividends to bear...
by JoMoney
Sun Oct 21, 2018 12:20 pm
Forum: Investing - Help with Personal Investments
Topic: Berkshire A Paper stock certificate
Replies: 10
Views: 761

Re: Berkshire A Paper stock certificate

Every paper stock certificate I've seen has the owners name printed on the front, and usually has places on the back where it can be signed over to someone else (similar to a car title), the new owner would have to send it in to get a new certificate issued (and for the company or their agent to upd...
by JoMoney
Sun Oct 21, 2018 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: RatherBeSailing's Law of Home Maintenance Expenses
Replies: 5
Views: 485

Re: RatherBeSailing's Law of Home Maintenance Expenses

What is considered/included as "maintenance" ?
The IRS lets you depreciate the structure over 27.5 years... which would work out to about 3.6%, but seems to be all inclusive of the entire structure.
by JoMoney
Sat Oct 20, 2018 2:30 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 175
Views: 38343

Re: Vanguard has switched to brokerage only accounts

Doc wrote:
Sat Oct 20, 2018 2:13 pm
... The upgrade eliminated the problem of having your settlement fund in a different legal entity from your brokerage holdings which could cause several days delay in making trades ...
:confused The old mutual fund accounts didn't have / require a "settlement fund" ... did they?
by JoMoney
Sat Oct 20, 2018 10:26 am
Forum: Personal Consumer Issues
Topic: Why are Carbon Offset Credits so cheap?
Replies: 39
Views: 2115

Re: Why are Carbon Offset Credits so cheap?

Better question I think is, why are there carbon credits at all? Not that I agree with all the anti-pollution regulations, but if I did I would ask why should someone with more money be allowed to put more pollution into the atmosphere than he would if he had less money. If one was really serious a...
by JoMoney
Sat Oct 20, 2018 10:16 am
Forum: Investing - Theory, News & General
Topic: The End of Indexing?
Replies: 33
Views: 4026

Re: The End of Indexing?

... Small investors would be locked out if all went to private equity. Qualified (or accredited) investors require either investable assets of $1 Million or an annual (joint) income of $300K... As I said, I don't believe it would ever get to the point of being a world of only private equity, but if...
by JoMoney
Sat Oct 20, 2018 8:34 am
Forum: Investing - Theory, News & General
Topic: Protecting large sums of cash.
Replies: 25
Views: 2535

Re: Protecting large sums of cash.

U.S. Treasuries directly held

FDIC Bank CDs via CDARS
https://www.cdars.com/home/how-cdars-works

Brokerage account with SIPC + additional insurance beyond SIPC limits
by JoMoney
Sat Oct 20, 2018 7:36 am
Forum: Investing - Theory, News & General
Topic: The End of Indexing?
Replies: 33
Views: 4026

Re: The End of Indexing?

...Pretty much by definition, before expenses, half of them will beat the index and half of them will underperform the index. In practice, it's more like 40% beat the index in a single year, and after multiple years fewer and fewer show any ability to consistently beat the index. https://i.postimg....
by JoMoney
Sat Oct 20, 2018 6:44 am
Forum: Investing - Theory, News & General
Topic: The End of Indexing?
Replies: 33
Views: 4026

Re: The End of Indexing?

... not to mention a corporate governance problem... That's something that concerns me more than the idea that indexers will somehow cause pricing to be more wrong than if they were following some other investment scheme. My consolation, is that it's not a new problem. Common stock investors have l...
by JoMoney
Sat Oct 20, 2018 3:35 am
Forum: Investing - Theory, News & General
Topic: Tilting One More Step Beyond USA vs non-USA
Replies: 14
Views: 1170

Re: Tilting One More Step Beyond USA vs non-USA

... Why not take this extra step? If you could show that BRK offered lower risk, with equivalent (or better) expected returns, at whatever price it was selling for, then I would expect that to whatever extent the market as a group recognizes that advantage, it would adjust the price of BRK to effec...
by JoMoney
Sat Oct 20, 2018 2:27 am
Forum: Investing - Theory, News & General
Topic: The End of Indexing?
Replies: 33
Views: 4026

Re: The End of Indexing?

None of the "six structural mega-trends" mentioned will kill indexing. The two things that I worry about for my retirement are: 1) Concentration of wealth to the point where private equity dwarfs the public market The growth of GDP is correlated with the weighted average of the public and private e...
by JoMoney
Sat Oct 20, 2018 12:41 am
Forum: Investing - Theory, News & General
Topic: DFA small value... acitve management?
Replies: 45
Views: 2269

Re: DFA small value... acitve management?

Picking a style fund is implicitly active management, it's just rules based.
by JoMoney
Sat Oct 20, 2018 12:26 am
Forum: Investing - Theory, News & General
Topic: The End of Indexing?
Replies: 33
Views: 4026

Re: The End of Indexing?

... Jensen identifies six structural mega-trends that are set to disrupt investors around the globe: 1. End of the debt super-cycle 2. Retirement of the baby boomers 3. Declining spending power of the middle classes 4. Rise of the East 5. Death of fossil fuels 6. Mean reversion of wealth-to-GDP In ...
by JoMoney
Fri Oct 19, 2018 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Give 1 Week Notice: Can Employer Retaliate by Not Paying Vacation?
Replies: 53
Views: 4723

Re: Give 1 Week Notice: Can Employer Retaliate by Not Paying Vacation?

From what i've seen/heard, the "consequence" is that if you ever have a future employer go to them for a reference, they'll explain that you're "ineligible for rehire" (without giving any specific reason why, but can be enough innuendo for being a bad reference that it may cost you a future job, eve...
by JoMoney
Fri Oct 19, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: [How many SP500 companies in Mid Cap Index? Split 50/50 btwn Ttl Mkt and Mid Cap?]
Replies: 15
Views: 645

Re: Split US equity 50/50 btwn Ttl Mkt and Mid Cap Indx

See my post in your other thread. The S&P Mid-cap index (which is what Vanguard's Mid cap fund tracked back then) has differences that were especially significant in that time frame. Vanguard's mid-cap index fund now tracks a different index. If you want protection from stocks performing poorly, I'd...
by JoMoney
Fri Oct 19, 2018 10:50 am
Forum: Investing - Theory, News & General
Topic: [How many SP500 companies in Mid Cap Index? Split 50/50 btwn Ttl Mkt and Mid Cap?]
Replies: 15
Views: 645

Re: Help:How many SP500 companies included in Mid Cap Index

My thoughts, are that if you thought there was a bubble in stocks like in 2000, bonds did better than mid-caps (especially on a risk adjusted basis) https://i.postimg.cc/GtDwn63F/Capture.jpg There's nothing that says any of these assets will be priced to have the returns they did in the past, but at...
by JoMoney
Fri Oct 19, 2018 9:38 am
Forum: Personal Consumer Issues
Topic: How important is registered mail for important documents?
Replies: 28
Views: 1501

Re: How important is registered mail for important documents?

I would only send something 'registered' if for legal reasons I thought I might need proof that I sent someone a letter.
by JoMoney
Fri Oct 19, 2018 9:36 am
Forum: Investing - Theory, News & General
Topic: [How many SP500 companies in Mid Cap Index? Split 50/50 btwn Ttl Mkt and Mid Cap?]
Replies: 15
Views: 645

Re: Help:How many SP500 companies included in Mid Cap Index

Can anyone help me determine how many S&P500 index companies are included in the Vanguard Mid Cap Index? I have reasons I need to know this, but no need to explain why yet, I just don't have a tool that would export a mid cap index list of ticker symbols to do an excel quick lookup formula. I would...
by JoMoney
Fri Oct 19, 2018 9:33 am
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1194
Views: 99150

Re: International index funds in AA? Is it really worth it?

You can find lots of threads, including some currently active ones, like https://www.bogleheads.org/forum/viewtopic.php?f=10&t=261579 that covers this same topic. There are a handful of us Bogleheads who essentially follow a similar line of reasoning, and just use a single broad US market index like...
by JoMoney
Fri Oct 19, 2018 9:05 am
Forum: Investing - Theory, News & General
Topic: [How many SP500 companies in Mid Cap Index? Split 50/50 btwn Ttl Mkt and Mid Cap?]
Replies: 15
Views: 645

Re: Help:How many SP500 companies included in Mid Cap Index

I count 256 ( of the 366 stocks in VIMAX as also being included in the 509 holdings of VFIAX ABIOMED Inc. Advance Auto Parts Inc. Advanced Micro Devices Inc. AES Corp./VA Affiliated Managers Group Inc. Akamai Technologies Inc. Alaska Air Group Inc. Albemarle Corp. Alexandria Real Estate Equities Inc...
by JoMoney
Fri Oct 19, 2018 7:43 am
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10640

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

... I'd like a more apples-to-apples comparison if you could; or if you don't have time, if you could point me in the direction of the tool you're using to show these charts. Is it portfoliovisualizer? If so, how do you get the MSCI index info there? Thanks. In the top-right hand corner of https://...
by JoMoney
Fri Oct 19, 2018 6:50 am
Forum: Investing - Theory, News & General
Topic: Why is dividend yield a part of expected future returns
Replies: 15
Views: 1077

Re: Why is dividend yield a part of expected future returns

The value of the stock may go down when a cash dividend is paid, but excess cash sitting on the balance sheets reduces the 'Return On Equity' of the company. Investors usually want companies/stocks that can grow at some reasonable rate, nobody wants to pay a dollar for a dollar sitting on the corpor...
by JoMoney
Fri Oct 19, 2018 3:58 am
Forum: Investing - Theory, News & General
Topic: Thoughts on consumer staples funds?
Replies: 9
Views: 536

Re: Thoughts on consumer staples funds?

Vanguard's Consumer Staples fund (VDC) has more than 20% of it's holdings in 2 stocks, and more than 60% in it's top 10 stocks.
by JoMoney
Fri Oct 19, 2018 12:43 am
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10640

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

... We can keep giving anecdotes, but the bottom line is the US economy will continue to be a smaller part of the world economy in the future. You can ignore that or not. It might... and? Are you trying to draw some correlation between that and returns from stocks? I'm not sure what conclusions to ...
by JoMoney
Fri Oct 19, 2018 12:04 am
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10640

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

India and China are both in the the top 12 countries held in the Vanguard Total Intl Stock Fund, so it isn't hard to invest in them (not counting countless other ETFs/funds). It will become even easier (if it isn't easy enough now) as their economies become larger, more open and more advanced. So f...
by JoMoney
Thu Oct 18, 2018 11:53 pm
Forum: Investing - Theory, News & General
Topic: Why dismiss sectors?
Replies: 31
Views: 1609

Re: Why dismiss sectors?

In general it seems like sectors are dismissed on this forum for simplicity's sake, and secondarily because the common belief here is that market weighting is efficient and will produce optimal returns. Personally I do buy Vanguard's sector ETF's to 'balance' (in my opinion) my portfolio . S&P 500 ...
by JoMoney
Thu Oct 18, 2018 10:16 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10640

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

^ The multi-national companies that trade on the U.S. market have profited greatly from the growing economies in India, China, and elsewhere.
by JoMoney
Thu Oct 18, 2018 6:20 pm
Forum: Investing - Theory, News & General
Topic: What do index funds do when firm's market cap drops?
Replies: 17
Views: 1390

Re: What do index funds do when firm's market cap drops?

Any new contribution to a market-cap index (dividend reinvestment or other contribution), is distributed across the entire market proportionately. To the extent that non-dividend paying stocks are purchased, dividend paying stocks are also purchased... by weight..., and distributed across the entire...
by JoMoney
Thu Oct 18, 2018 6:04 pm
Forum: Investing - Theory, News & General
Topic: So...what’s Plan B [for your retirement security]?
Replies: 20
Views: 2218

Re: So...what’s Plan B?

J295 wrote:
Thu Oct 18, 2018 6:01 pm
Spend less $$ and/or make more $$.
Or plan on not living as long.
I don't see any other options.
by JoMoney
Thu Oct 18, 2018 5:44 pm
Forum: Investing - Theory, News & General
Topic: Top stocks of 2000 trail the market over the next 18 years
Replies: 39
Views: 2862

Re: Top stocks of 2000 trail the market over the next 18 years

The implication of this and similar anti-market cap weighting articles, is that the largest market-cap stocks are somehow over-priced at the time an investor purchases them in a cap weighted strategy. Something I haven't seen mentioned, is that it would also imply there is a benefit to the strategy ...
by JoMoney
Thu Oct 18, 2018 5:33 pm
Forum: Investing - Theory, News & General
Topic: What do index funds do when firm's market cap drops?
Replies: 17
Views: 1390

Re: What do index funds do when firm's market cap drops?

Regarding the S&P 500 index Total Return, an interesting factoid is that there are a couple different S&P 500 Total Return indexes that represent different periods where the 'Total Return' index followed a different scheme reinvesting dividends http://www.cftech.com/index.php/the-brainbank-archive/f...
by JoMoney
Thu Oct 18, 2018 4:48 pm
Forum: Investing - Theory, News & General
Topic: What do index funds do when firm's market cap drops?
Replies: 17
Views: 1390

Re: What do index funds do when firm's market cap drops?

If a company pays dividends, and those dividends must be reinvested in weighted portfolio, would the top performers receive a benefit from the dividend payers? Dividends are not reinvested in typical mutual funds or ETFs. They are distributed to the shareholders. To add to that, dividends that inve...
by JoMoney
Thu Oct 18, 2018 4:31 pm
Forum: Investing - Theory, News & General
Topic: Malkiel no longer endorses blind-folded monkeys, likes smart beta
Replies: 31
Views: 3250

Re: Malkiel no longer endorses blind-folded monkeys, likes smart beta

Interesting that Malkiel co-authored a WSJ OpEd with John Bogle in 2006 casting doubt on these strategies (before the 'Smart Beta' term had been coined). http://johncbogle.com/wordpress/wp-content/uploads/2006/08/WSJ%20op-ed.pdf That perspective has been largely correct since then. The Total Stock M...
by JoMoney
Thu Oct 18, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: Tilting One More Step Beyond USA vs non-USA
Replies: 14
Views: 1170

Re: Tilting One More Step Beyond USA vs non-USA

I like Warren Buffett, I'm taking his advice on what he thinks most U.S. investors should do with regard to their investment portfolio. BRK is probably a pretty solid company, but I'm not willing to make an all-in bet on it. Even Buffett acknowledges BRK is exposed to some unique catastrophic risks....
by JoMoney
Thu Oct 18, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: Why dismiss sectors?
Replies: 31
Views: 1609

Re: Why dismiss sectors?

I have been reading this forum for quite some time, paying attention to people's views on asset allocation, investment strategies etc. It seems to me that most Bogleheads dislike sectors. While I see why you should not put a big chunk of your money into a specific sector, I do not quite see why a p...
by JoMoney
Thu Oct 18, 2018 2:04 pm
Forum: Investing - Theory, News & General
Topic: Top stocks of 2000 trail the market over the next 18 years
Replies: 39
Views: 2862

Re: Top stocks of 2000 trail the market over the next 18 years

The largest by market-cap don't beat the market aggregate.
The smallest by market-cap don't beat the market aggregate.
Mel's Mid-Caps For The Win ?
< Morningstar Chart Wilshire Large-Cap v. Micro-Cap v. Mid-Cap >
by JoMoney
Thu Oct 18, 2018 1:46 pm
Forum: Investing - Theory, News & General
Topic: flat for the year
Replies: 27
Views: 2480

Re: flat for the year

We should celebrate that we are still positive so far. The GDP is only growing 3% YOY since 2009. Can BH explain how the market return at north of 10%. I can't figure it out. U.S. stocks have had a long term real total return of about 6.6% going back over a hundred years. Real GDP has been around 3...