Search found 251 matches

by bzboy
Tue May 31, 2011 5:48 pm
Forum: Investing - Theory, News & General
Topic: Stocks are not necessarily for the long run
Replies: 60
Views: 8073

Re: Stocks are not necessarily for the long run

http://www.wealthtrack.com/ Some noteworthy takeaways: > The conventional wisdom regarding the expected returns and volatility of equities is probably wrong. It is unwise to assume that U.S. equties will return the 7% real that they have in the past, or that stocks will be less volatile the longer ...
by bzboy
Wed Apr 20, 2011 8:05 pm
Forum: Investing - Theory, News & General
Topic: Baby Boomers: Is it important to leave inheritance to kids?
Replies: 88
Views: 11182

Yes. And it can be done easily., esp by Bogleheads. I think the big benefit Bogleheads can do for their children is to take advantage of the benefits of compounding for their children starting from a young age. They can put away small amounts on their kids' names 5k/10k now and then into tax efficen...
by bzboy
Fri Apr 15, 2011 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Rant: Talking to Customer Service Reps is sickening
Replies: 37
Views: 5164

The machine makes me punch in my account number but the rep never has that info. She/he asks me again. So Annoying.

Once she said she needs me to say it for the voice recorder! Dang!
by bzboy
Fri Apr 15, 2011 5:24 pm
Forum: Personal Consumer Issues
Topic: Using sir and ma'am
Replies: 91
Views: 12024

The first time a young (sales) lady called me Sir in a store, I felt old. I live in California. I was never called Sir until then in such situations. I was 40 something and my hair just started to gray.

I have had only a few such occasions. Fortunately many people here seem sensitive about this.
by bzboy
Fri Apr 15, 2011 5:13 pm
Forum: Investing - Theory, News & General
Topic: The Cost of Value Tilting
Replies: 39
Views: 6206

Re: The Cost of Value Tilting

You're paying a high cost to get marginally lower P/B exposure, so you must believe RAFI has something else going for it to buy that fund. Rick Ferri Underlining by me. These are my thoughts lately. I like RAFI and I have been in the value camp for a long time but I am starting to gravitate towards...
by bzboy
Fri Apr 15, 2011 3:42 pm
Forum: Investing - Theory, News & General
Topic: The Cost of Value Tilting
Replies: 39
Views: 6206

Let's say you were going to use P/B as the factor to determine cost. You're idea is buy a value fund that has the lowest P/B you can find. Here's some Morningstar data from the end of March for a few value funds. Relative P/B means relative to the market. Lower is better: Fund Name Relative P/B Fee...
by bzboy
Fri Apr 15, 2011 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Value-Weighted Indexing
Replies: 21
Views: 3445

Let's say you were going to use P/B as the factor to determine cost. You're idea is buy a value fund that has the lowest P/B you can find. Here's some Morningstar data from the end of March for a few value funds. Relative P/B means relative to the market. Lower is better: Fund Name Relative P/B Fee...
by bzboy
Fri Apr 15, 2011 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: How much to give at a wedding?
Replies: 114
Views: 13620

Great inputs. A couple of questions: 1. Would the gift be lower if you knew that the wedding is paid for by the parents (of the bride or groom or both)? Or would you give a separate gift to the parents to cover their costs? 2. What would be an amount to send if you are not attending? In my own marri...
by bzboy
Fri Apr 15, 2011 11:55 am
Forum: Investing - Theory, News & General
Topic: Joe Battipaglia died today
Replies: 18
Views: 6133

He is such a likable guy. He used to be on the TV a lot during the 90s.

Very sad. RIP, Joe.
by bzboy
Fri Apr 15, 2011 4:22 am
Forum: Investing - Theory, News & General
Topic: --POLL-- Which index provider do you prefer?
Replies: 11
Views: 2223

RAFI.

Too bad, I don't see any non-mkt cap weighted index provider in that list.

I think mkt cap weighting is inherently flawed.


If I *had* to pick from that list, it has to be S&P as they provide EW indexes and also pure style indexes which are not mktcap weighted.
by bzboy
Wed Apr 13, 2011 4:00 am
Forum: Personal Investments
Topic: Vanguard Small Value Index as Admiral fund
Replies: 3
Views: 1038

mikep wrote:Can you buy the ETF?

Or institutional version (VSIIX E/R = 0.08%) might be in your menu of 401(k) options?
I currently have a large $$$ position in the fund. Had been reluctant to open a brokerage account to convert it to ETF. Was hoping on a Admiral fund in this for the last several years.
by bzboy
Tue Apr 12, 2011 7:39 pm
Forum: Personal Investments
Topic: Vanguard Small Value Index as Admiral fund
Replies: 3
Views: 1038

Vanguard Small Value Index as Admiral fund

I wonder why Vanguard doesn't yet have an Admiral version of this fund. In case, Gus and Co are listening at Vanguard, it's high time they provided this.
by bzboy
Mon Feb 28, 2011 10:22 pm
Forum: Personal Consumer Issues
Topic: Bye Bye Microsoft- Hello Mac!
Replies: 193
Views: 26177

I haven't used those macs since those 9" back and white screens and am not missing them. This mac fanfare is just a fad, IMO. This too shall pass. Computers are nowadays just commodity. Any which one you use, you spend most of your time on the Net and Software as a Service (SAAS). Personally, I beli...
by bzboy
Wed Feb 09, 2011 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Relearn SQL or learn Python?
Replies: 24
Views: 5268

Python is easy to learn and used by many companies and projects now. I heard that the rates are also good.

I agree with the salesforce suggestions above.
by bzboy
Fri Feb 04, 2011 1:04 am
Forum: Investing - Theory, News & General
Topic: RAFI Revelation
Replies: 27
Views: 3318

Re: bz

As to microcap. Don't buy that story at all as IMO small is clearly a risk story, both simple logic for liquidity premium and the papers on small caps being risk show simple risk story. So over the long term there should be a large decile 10 premium as the size premium is pretty monotonic right up ...
by bzboy
Thu Feb 03, 2011 5:53 pm
Forum: Investing - Theory, News & General
Topic: RAFI Revelation
Replies: 27
Views: 3318

Re: BZ

We for example are now using an alternative to DFA for TM small value, as DFA moved to the TM Targetted Value, causing about 90bp lower expected return. I feel vindicated. Are you trying to find something for Decile 10 also? Also I am starting to wonder if Microcap's outsized outperformance has com...
by bzboy
Thu Feb 03, 2011 4:41 pm
Forum: Investing - Theory, News & General
Topic: Don Phillips: The case for indexing significantly overstated
Replies: 32
Views: 5556

Indexers rely on others to spend their time and money evaluating good and bad companies and assigning approrpriate prices to their assets. If we take indexing to its logical extreme we would have no evaluation of assets. Scammers could then start shell companies with worthless but pumped up stocks ...
by bzboy
Thu Feb 03, 2011 12:40 pm
Forum: Investing - Theory, News & General
Topic: Do you favor the end of dividends?
Replies: 58
Views: 6712

Corporations should be free to choose how they want to deal with their cash flows. I have heard things llike 'we don't need to worry about paying dividends because very few in our industry do' or 'we can get away with not paying dividends' etc. I like to see a sense in the board room that the share...
by bzboy
Thu Feb 03, 2011 12:10 pm
Forum: Investing - Theory, News & General
Topic: Do you favor the end of dividends?
Replies: 58
Views: 6712

Dividends get some discipline in the exec staff and the boardroom. This is where they really (and literally) need to ' show me the money '. It is very very important. Also, comapnies buying back stock seem to be obfuscating the shares issued in ISOs. May be that entails them to even more lavish in K...
by bzboy
Thu Feb 03, 2011 11:58 am
Forum: Investing - Theory, News & General
Topic: RAFI Revelation
Replies: 27
Views: 3318

Re: few quick thoughts as I am travelling

There are decent arguments to use, but this is not one of them. DFA Vector strategies are not purely market cap weighted, but they are still considered fairly traditional value strategies. http://portfolios.morningstar.com/fund/summary?t=DFVEX®ion=USA&culture=en-US That's the noise, I think. Con...
by bzboy
Thu Feb 03, 2011 11:15 am
Forum: Investing - Theory, News & General
Topic: RAFI Revelation
Replies: 27
Views: 3318

Re: few quick thoughts as I am travelling

1) At seminar I attended not long ago Gus Sauter of Vanguard did presentation of RAFI indices and showed it was really nothing more than a value strategy. Larry, There are some big differences from the way we understand Value strategy. For example, the value strategy buys only value stocks (the bot...
by bzboy
Thu Feb 03, 2011 2:51 am
Forum: Investing - Theory, News & General
Topic: RAFI Revelation
Replies: 27
Views: 3318

" But, I'm not sure that his formula really delivers any added value over an equal-weighted index. The one advantage I do see with RAFI vs. equal-weight is that SFLNX (Schwab's large-cap rafi fund) has a lower expense ratio and less tracking error than RSP (Rydex equal-weight S&P 500). IMO, EW can ...
by bzboy
Wed Feb 02, 2011 10:58 pm
Forum: Investing - Theory, News & General
Topic: RAFI Revelation
Replies: 27
Views: 3318

RAFI Revelation

Rob Arnott has a paper at IndexUniverse about RAFI's 5 year score card. http://www.indexuniverse.com/sections/features/8744-the-rafi-five-year-scorecard.html Reading this, I am intrigued by the "contra trading" that he claims is contributing about 3/4ths to the RAFI premium. It is well documented th...
by bzboy
Wed Feb 02, 2011 2:19 pm
Forum: Investing - Theory, News & General
Topic: Interesting NYT article on DFA
Replies: 131
Views: 17734

Re: Hindsight

bzboy: with hundreds/thousands of ETFs today, searching the Morningstar database for top past performing strategies is not unlike the game many play with active management. Right. It's convenient to think that that's what bogleheads do. Even if some seasoned boglehead *were* to do that he/she may d...
by bzboy
Wed Feb 02, 2011 10:18 am
Forum: Personal Consumer Issues
Topic: Roku Anyone?
Replies: 56
Views: 8814

Is youtube available on roku?
by bzboy
Tue Feb 01, 2011 2:53 pm
Forum: Investing - Theory, News & General
Topic: Interesting NYT article on DFA
Replies: 131
Views: 17734

At the same time, I am not entirely convinced that this additional income is a completely risk free exercise. I tend to think that it's actually detrimental for the longs. It results in higher volatility in the markets which is not good for the bottom line of people who are long. I wish they put th...
by bzboy
Tue Feb 01, 2011 2:35 pm
Forum: Investing - Theory, News & General
Topic: Interesting NYT article on DFA
Replies: 131
Views: 17734

(and they are v. low when you account for sec. lending) Between this comment and Bob Sawyer's website stating such, do DFA investors really believe that they are in the only fund family returning securities lending income to its investors? :shock: It's not a matter of if DFA is providing securities...
by bzboy
Tue Feb 01, 2011 2:22 pm
Forum: Investing - Theory, News & General
Topic: Interesting NYT article on DFA
Replies: 131
Views: 17734

Re: cheapskate

The problem many have is that they think tax efficiency is the goal of TM fund. The ONLY RIGHT goal is highest AT return, not highest tax efficiency. If you don't sell the winners that drift out of the asset class (but only when have LT gains) then the fund will drift to lower returning fund. And w...
by bzboy
Mon Jan 31, 2011 6:55 pm
Forum: Investing - Theory, News & General
Topic: Interesting NYT article on DFA
Replies: 131
Views: 17734

I did have a choice and and went with ETF format. I may have tolerated DFA funds in tax deferred accounts but in taxable accounts they are a pain. bzboy, Would you be willing to share why you found DFA funds to be a pain in taxable accounts? I'm currently with a DFA advisor and am probably going to...
by bzboy
Mon Jan 31, 2011 6:01 pm
Forum: Investing - Theory, News & General
Topic: Interesting NYT article on DFA
Replies: 131
Views: 17734

DFA is really no big deal anymore. With Pure Value ETFs, WisdomTree, Equal Weight and RAFI ETFs DFA is totally irrelevant considering the access fees (advisor fees) and the inherent tax inefficiencies of the mutual fund format. Ignore the fluff about security lending etc. That is practically done b...
by bzboy
Mon Jan 31, 2011 4:22 pm
Forum: Investing - Theory, News & General
Topic: Interesting NYT article on DFA
Replies: 131
Views: 17734

DFA is really no big deal anymore. With Pure Value ETFs, WisdomTree, Equal Weight and RAFI ETFs DFA is totally irrelevant considering the access fees (advisor fees) and the inherent tax inefficiencies of the mutual fund format. Ignore the fluff about security lending etc. That is practically done b...
by bzboy
Sun Jan 30, 2011 7:56 pm
Forum: Investing - Theory, News & General
Topic: Interesting NYT article on DFA
Replies: 131
Views: 17734

DFA is really no big deal anymore. With Pure Value ETFs, WisdomTree, Equal Weight and RAFI ETFs DFA is totally irrelevant considering the access fees (advisor fees) and the inherent tax inefficiencies of the mutual fund format. Ignore the fluff about security lending etc. That is practically done by...
by bzboy
Tue Jan 25, 2011 8:50 pm
Forum: Investing - Theory, News & General
Topic: Global X Rolls Out Style Emerging ETFs
Replies: 14
Views: 2079

I think I like these ETFs. Their value screens across the whole emerging markets. While their Growth ETF has singinficant China and India holdings, the Value ETF has very little of either. I think that's very desirable. I am favorably inclined. http://www.globalxfunds.com/Fact_Sheet/Fund126.pdf http...
by bzboy
Sat Jan 15, 2011 7:37 am
Forum: Investing - Theory, News & General
Topic: Fidelity's "Extreme Tax Loss Harvesting" product
Replies: 13
Views: 3593

Hi Andy, thanks for all your advice on DIY-indexing. You should write a book. Seriously. Just curious: Why 35 stocks? Why not 40? or 30? or 100? the 35 may have come from the Bridgeway's Bluehchip 35 index fund, BRLIX which tracks SP500 reasonably well. The 35 holdings are listed Bridgeway site. I ...
by bzboy
Sat Jan 08, 2011 2:19 am
Forum: Personal Investments
Topic: New Shares to Dilute SH Value
Replies: 30
Views: 2158

Re: New Shares to Dilute SH Value

You seem to have a hangup with the compensation paid to executives. But what does it matter what form (cash or shares) the compensation payment takes? It is my feeling that these options for accounting purposes are valued very conservatively. I wish they offer those options to the investors at the ...
by bzboy
Fri Jan 07, 2011 11:15 pm
Forum: Personal Investments
Topic: New Shares to Dilute SH Value
Replies: 30
Views: 2158

According to Standard & Poor's, between Oct. 31, 2009, and Oct. 31, 2010, the outstanding, fully-diluted share capital of the S&P 500 rose 7.6%. Some of that came from new stock issued by stricken banks. And even when you exclude the financials, the overall number still rose by 1%. That is shocking...
by bzboy
Fri Jan 07, 2011 10:31 pm
Forum: Investing - Theory, News & General
Topic: [BOSVX] Bridgeway OMNI Small-Cap Value
Replies: 6
Views: 2124

Their other SV fund, BRSVX ain't exactly great!

What would be the difference? 15% in Intl?

Can't find anything about tax efficiency. Many of their funds are managed to be tax efficient.
by bzboy
Wed Dec 29, 2010 9:35 pm
Forum: Personal Investments
Topic: Rydex Funds
Replies: 13
Views: 2128

Mazz: from your description, it sounds like these Rydex sector funds offer a sector bet but with an overweighting to small caps in each sector. I assume you cannot get that with traditional funds ( can you buy a small cap sector fund?) . Yes, there are small cap sector funds. Not EW. That too at a ...
by bzboy
Thu Dec 23, 2010 8:28 pm
Forum: Personal Consumer Issues
Topic: Any doc got a PDR? Label/pill mismatch!
Replies: 28
Views: 5052

Thanks. Learnt something new today!
by bzboy
Mon Dec 20, 2010 12:45 am
Forum: Investing - Theory, News & General
Topic: Rydex announces 5 new Equal Weight ETFs
Replies: 30
Views: 4751

by bzboy
Sun Dec 19, 2010 10:35 pm
Forum: Investing - Theory, News & General
Topic: Mohnish Pabrai on Index Funds
Replies: 17
Views: 3002

I guess I'm supposed to know who Mohnish Pabrai is, but I don't. And he buys individual stocks and takes major concentrated bets. His advise is for kids not to try this at home! P.S. I think many bogleheads are not average or naive investors. Heck, many of them are better than some portfolio manage...
by bzboy
Sat Dec 18, 2010 9:17 pm
Forum: Investing - Theory, News & General
Topic: Poll: Have you bought an individual stock in 2010?
Replies: 53
Views: 5798

Yes, many. They are usually at super cheap prices. Difficult not to buy a good concern that's super cheap. Of course I don't bet the farm on them.
by bzboy
Thu Dec 16, 2010 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: BBC: Will You Become a Millionaire?
Replies: 64
Views: 8575

I recall this from the peak days of 2000. One of my friends was asked how to become a millionnaire...and his answer was "lose a big chunk of my money" ;)
by bzboy
Tue Dec 14, 2010 9:22 pm
Forum: Personal Investments
Topic: Emerging market etfs with more small cap and Southeast Asia
Replies: 17
Views: 2000

Take a peak at EWEM, the new one from Rydex:

BRIC ~37%
Taiwan, korea, SA ~28%

the rest make up the other ~35%


It's EW so higher trading costs, not to mention that many of these may be thinly traded, relatively speaking.
by bzboy
Tue Dec 14, 2010 5:35 pm
Forum: Investing - Theory, News & General
Topic: Rydex announces 5 new Equal Weight ETFs
Replies: 30
Views: 4751

The S&P EW ETFs above are also managed to be EW in sectors also (every sector is weighted to be 1/9th). Any studies on how this plays out?
by bzboy
Tue Dec 14, 2010 5:33 pm
Forum: Investing - Theory, News & General
Topic: EW Russ/MSCI US/Intl/EM ETFs: Analysis? Any one?
Replies: 2
Views: 695

Thank you, Stratton.
by bzboy
Tue Dec 14, 2010 1:38 am
Forum: Personal Investments
Topic: ETF/Mutual Fund Costs, ER vs Bid/Ask Spread
Replies: 23
Views: 3445

Re: ETF/Mutual Fund Costs, ER vs Bid/Ask Spread

I feel like I have to ask: What's in it for Vanguard? If the ER is lower on the ETF, even with free trades, then it must be saving Vanguard money somehow. Is it really a free lunch for investors? Reduced management headaches. Account management is offloaded to brokerages including the tax reporting...
by bzboy
Tue Dec 14, 2010 12:59 am
Forum: Personal Investments
Topic: ETF/Mutual Fund Costs, ER vs Bid/Ask Spread
Replies: 23
Views: 3445

Re: ETF/Mutual Fund Costs, ER vs Bid/Ask Spread

The ETFs are so much cleaner because the AP puts together the basket of stocks and *pays* fees to create/redeem creation units and the ETF manager hardly has to worry about cash drag or escalating transaction costs. He doesn't need to worry about large redemptions which can happen when everybody an...
by bzboy
Tue Dec 14, 2010 12:04 am
Forum: Personal Investments
Topic: ETF/Mutual Fund Costs, ER vs Bid/Ask Spread
Replies: 23
Views: 3445

I tend to think that VG (probably) put those fees to discourage retail transactions into the fund. Too many retail transactions increase the chance of tracking error and may even entail some cash drag. Also the herd mentality into/out of emerging markets can add to the transaction costs. The ETFs ar...
by bzboy
Mon Dec 13, 2010 11:07 pm
Forum: Personal Investments
Topic: Why some new VG ETFs not listed on Vanguard site?
Replies: 12
Views: 1773

Some of these funds have very low trading volumes which I think is explained by the fact that they don't come up in the "All etfs" category. Personally, I think there is something somewhat weird about this approach, but for whatever reason that is how they are handling it. I think so too. The diffe...