Search found 3402 matches

by Beagler
Fri Sep 21, 2012 9:49 pm
Forum: Investing - Theory, News & General
Topic: TIPS: Inflation protection still has risks.
Replies: 42
Views: 5105

Re: TIPS: Inflation protection still has risks.

When will TIPS be included in Total Bond? Last I heard, TIPS as a percentage of government debt is now 17%. I may be incorrect here. If the TIPS debt markets continue to increase, I would expect the index that Total Bond, could possibly be revised in the future. After all, the fund name is "Total B...
by Beagler
Fri Sep 21, 2012 4:13 pm
Forum: Investing - Theory, News & General
Topic: Will Your (TSM) Equity Bet Pay Off?
Replies: 222
Views: 13271

Re: Is TSM most "Efficient?"

[However, that implies growth stocks outperformed over the prior decade. And I can't reconcile that with the statement that the excess return of value stocks has "persisted ... and shows no sign of disappearing" . Any honest proponent of the value premium would tell you that growth and value tend t...
by Beagler
Thu Sep 20, 2012 10:38 pm
Forum: Investing - Theory, News & General
Topic: Perspective: Multi-Factor vs Total Market choices
Replies: 38
Views: 3005

Re: Perspective: Multi-Factor vs Total Market choices

dbr wrote:...If you agree that REITs are more or less just more of small and value.....
This is the current M* breakdown of VGSIX, VG's REIT fund:
Image
by Beagler
Thu Sep 20, 2012 9:00 pm
Forum: Investing - Theory, News & General
Topic: Will Your (TSM) Equity Bet Pay Off?
Replies: 222
Views: 13271

Re: Will Your (TSM) Equity Bet Pay Off?

http://i45.tinypic.com/256h66q.jpg http://www.dfaus.com/2009/12/dimensional-thinkers-eugene-f-fama.html Precisely. That is the place on DFA's website where I hear "Dimensional thinker" Professor Fama expressing his thinking, and I do not hear him say "the average investor should choose any of the p...
by Beagler
Thu Sep 20, 2012 7:59 pm
Forum: Investing - Theory, News & General
Topic: Will Your (TSM) Equity Bet Pay Off?
Replies: 222
Views: 13271

Re: Rankings

The equity portfolios that Fama and French inform are listed here, and a cap-weighted TSM is not among them http://www.dfaus.com/strategies/us-equity.html Maybe it should be.: Fund Company Rankings Taylor's link is to M* Fund Company Rankings http://i50.tinypic.com/28kirr9.jpg DFA did not fare well...
by Beagler
Thu Sep 20, 2012 5:06 pm
Forum: Investing - Theory, News & General
Topic: Will Your (TSM) Equity Bet Pay Off?
Replies: 222
Views: 13271

Re: Will Your (TSM) Equity Bet Pay Off?

You guys certainly illustrate the power of denial. Suggest just accepting reality of Fama's words on this one. There's no conspiracy here. I just listened to the interview to make sure I was picking up tone of voice and body language. I did not sense any ambiguity and I do not believe I am making a...
by Beagler
Wed Sep 19, 2012 10:32 pm
Forum: Investing - Theory, News & General
Topic: Will Your (TSM) Equity Bet Pay Off?
Replies: 222
Views: 13271

Re: Will Your (TSM) Equity Bet Pay Off?

Also, there is nothing definitive in this comment, he [Fama] basically dodges the question: saying anyone can do anything they want. No, no, you're just dodging reality. Let's look again at his very specific, comprehensive, detailed reply. I'll highlight the important parts for you. It's even simpl...
by Beagler
Wed Sep 19, 2012 5:46 pm
Forum: Investing - Theory, News & General
Topic: Will Your (TSM) Equity Bet Pay Off?
Replies: 222
Views: 13271

Re: Will Your (TSM) Equity Bet Pay Off?

Thank you for your elaboration, Beagler. What's the ticker symbol for the DFA domestic equity Total Stock Market Fund? http://tinyurl.com/ch4dbf2 Are you suggesting via the lack of a DFA "total market" fund that [Fama, French, and Cochrane] do not believe that the market portfolio is an efficient c...
by Beagler
Tue Sep 18, 2012 10:33 pm
Forum: Investing - Theory, News & General
Topic: Will Your (TSM) Equity Bet Pay Off?
Replies: 222
Views: 13271

Re: Will Your (TSM) Equity Bet Pay Off?

Fama says that the market portfolio is always on the efficient frontier and a perfectly acceptable mix of factors. He also says over-weighting small or value compared to market weights adds risk in an effort to get more return. More risk of course means the possibility of lower returns, perhaps dra...
by Beagler
Tue Sep 18, 2012 9:18 pm
Forum: Investing - Theory, News & General
Topic: Will Your (TSM) Equity Bet Pay Off?
Replies: 222
Views: 13271

Re: Will Your (TSM) Equity Bet Pay Off?

You should consider reading a few of Jack's best books explaining the sources of return. For your reading pleasure: http://tinyurl.com/9cury4z The Rewards of Multiple-Asset Class Investing http://tinyurl.com/8rdt9d2 Asset Allocation, 4th Ed Thanks but no thanks. I follow the total market concepts a...
by Beagler
Tue Sep 18, 2012 9:17 pm
Forum: Investing - Theory, News & General
Topic: Will Your (TSM) Equity Bet Pay Off?
Replies: 222
Views: 13271

Re: Will Your (TSM) Equity Bet Pay Off?

am wrote:Now that the small value premium is known- game over. Let this one go in the books with other nonsense.
Now that's interesting to hear for those of us who've been invested in small-caps for some time (over a decade). The SV premium was certainly "known" then:

Image
by Beagler
Tue Sep 18, 2012 9:10 pm
Forum: Investing - Theory, News & General
Topic: Will Your (TSM) Equity Bet Pay Off?
Replies: 222
Views: 13271

Re: Will Your (TSM) Equity Bet Pay Off?

abuss368 wrote:
You should consider reading a few of Jack's best books explaining the sources of return.
For your reading pleasure: http://tinyurl.com/9cury4z The Rewards of Multiple-Asset Class Investing
http://tinyurl.com/8rdt9d2 Asset Allocation, 4th Ed
by Beagler
Tue Sep 18, 2012 9:04 pm
Forum: Investing - Theory, News & General
Topic: Will Your (TSM) Equity Bet Pay Off?
Replies: 222
Views: 13271

Re: Will Your (TSM) Equity Bet Pay Off?

Fama says that the market portfolio is always on the efficient frontier and a perfectly acceptable mix of factors. He also says over-weighting small or value compared to market weights adds risk in an effort to get more return. More risk of course means the possibility of lower returns, perhaps dra...
by Beagler
Sat Sep 15, 2012 2:59 pm
Forum: Investing - Theory, News & General
Topic: Poll: Equity allocation if you had enough to retire
Replies: 61
Views: 4328

Re: Poll: Equity allocation if you had enough to retire

Cut-Throat wrote:
bengal22 wrote:
But I, like most people, plan on increasing our net worth after we retire by earning more on our investments than what we spend.
Why would you want to? My goal is to spend every dime.
Charitable bequests rank high for some of us.
by Beagler
Fri Sep 14, 2012 10:56 pm
Forum: Investing - Theory, News & General
Topic: BOGLE on Bonds and Other Topics
Replies: 50
Views: 4976

Re: BOGLE on Bonds and Other Topics

Now I'm lost. Bogle has written, many times, that the total bond market index is all one needs for the fixed income side of a portfolio. Now he contradicts himself with this: Bogle: I don’t like the short end at all. I mean, for money market funds, short is fine. But I think you’re going to almost ...
by Beagler
Fri Sep 14, 2012 10:53 pm
Forum: Investing - Theory, News & General
Topic: A Gem: "The Only Investment Guide You'll Ever Need"
Replies: 31
Views: 6170

Re: A Gem: "The Only Investment Guide You'll Ever Need"

Bogleheads: For more than 25 years, The Only Investment Guide You'll Ever Need by Andrew Tobias has been a favorite financial guide for millions of readers. I first read it many years ago and have benefited from its friendly design and easily understandable advice. Below are excerpts from the book'...
by Beagler
Tue Sep 11, 2012 9:34 pm
Forum: Investing - Theory, News & General
Topic: Reuters Article - Me & My Money: Jack Bogle
Replies: 18
Views: 2547

Re: Reuters Article - Me & My Money: Jack Bogle

"I still have a little bit in the Wellington Fund (VWELX), which I've been investing in for many decades. I don't ever want to sever that relationship." "Bonds in my retirement accounts are about 30 percent Treasuries and 70 percent investment-grade corporates, like the Vanguard Intermediate-Term Co...
by Beagler
Sun Sep 02, 2012 10:34 pm
Forum: Investing - Theory, News & General
Topic: Favorite lazy portfolio?
Replies: 33
Views: 5490

Re: "6 Reasons Why Wall Street Hates Lazy Portfolios"

Bogleheads: Paul Farrell wrote this article explaining why Wall Street hates "Lazy Portfolio" and why they perform so well. 6 Reasons Why Wall Street Hates Lazy Portfolios I just have a hard time taking Mr. Farrell seriously knowing he published Think Astrology & Grow Rich: With the New "Money Astr...
by Beagler
Sun Sep 02, 2012 10:26 pm
Forum: Investing - Theory, News & General
Topic: 4 Reasons REITs belong in retirement portfolios
Replies: 12
Views: 2922

Re: 4 Reasons REITs belong in retirement portfolios

Muchtolearn wrote:They are part of the total stock market in the first place....
un soupçon only
by Beagler
Sun Aug 12, 2012 6:28 pm
Forum: Investing - Theory, News & General
Topic: 46.1% of S&P Company Sales Outside the USA in 2011
Replies: 56
Views: 6212

rely on multinations for int'l equity?

U.S. Multinationals as Vehicles for International Diversification (Digest Summary) Stephen E. Christophe and Richard W. McEnally, CFA Journal of Investing, Vol. 9, No. 4 (Winter 2000): 67-75 http://i48.tinypic.com/ogxam8.jpg http://tinyurl.com/8advoe5 As Eric Haas has pointed out, "This paper debunk...
by Beagler
Sat Aug 04, 2012 12:46 pm
Forum: Investing - Theory, News & General
Topic: International Equities - increasing or decreasing risk?
Replies: 112
Views: 9838

Re: International Equities - increasing or decreasing risk?

... as a start, you should read Vanguard's paper, Considerations for investing in non-U.S. equities. You really should, it's quite good and reasonably balanced. From the hyperlinked VG paper: http://i45.tinypic.com/2u70jdg.jpg From Mr. Bogle's 10th Anniversary Edition of Common Sense on Mutual Fund...
by Beagler
Sat Aug 04, 2012 12:23 pm
Forum: Investing - Theory, News & General
Topic: Apple (AAPL) and Large Cap Indexes- Problematic??
Replies: 26
Views: 3083

Re: Apple (AAPL) and Large Cap Indexes- Problematic??

Rodc wrote:...Plot growth of $10,000 for S&P 500 index fund vs TSM and you see the extra several thousand companies in TSM play no meaningful role....
From the inception date of VTSMX:
Image
by Beagler
Sat Aug 04, 2012 12:20 pm
Forum: Investing - Theory, News & General
Topic: Do high beta stocks produce higher returns
Replies: 36
Views: 3630

Re: Do high beta stocks produce higher returns

I'd be cautious about stamping a "risk" label on any backtested pattern, and calling it persistent. This is particularly interesting quote coming from someone who has repeatedly talked about volatility as risk, and while beta is not the same as volatility, the two are very highly correlated So are ...
by Beagler
Thu Aug 02, 2012 11:22 pm
Forum: Investing - Theory, News & General
Topic: Do high beta stocks produce higher returns
Replies: 36
Views: 3630

Re: Do high beta stocks produce higher returns

The wise investor embraces randomness, ignores historical data patterns, diversifies broadly, and keeps costs as low as possible. Diversifying broadly with TSM? Over 1/6 of the stocks are in the top 10 holdings, and 2 of the top 7 stocks are oil companies. http://i48.tinypic.com/p7zph.jpg http://ti...
by Beagler
Thu Aug 02, 2012 10:43 pm
Forum: Investing - Theory, News & General
Topic: a way to get returns with less risk?
Replies: 10
Views: 1967

Re: a way to get returns with less risk?

In real world funds, "low beta" and "value" strategies are simply bets on different sectors. Want to bet on a sector? Try TSM, where 2 of the top 7 stocks are oil companies; on top of that the top ten stocks comprise over 1/6 of the fund. http://tinyurl.com/bnnys2p http://i49.tinypic.com/axihx4.jpg...
by Beagler
Sun Jul 29, 2012 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Why not a Target Fund?
Replies: 24
Views: 4681

Re: Why not a Target Fund?

You cannot be sure that your asset allocation won't be substantially changed with the TR series. Don't forget that VG has made 2 large changes in their TR fund lineup since their relatively short inception: the first greatly increased the % equities (just in time for the 2008 crash). The second chan...
by Beagler
Thu Jul 12, 2012 6:24 pm
Forum: Investing - Theory, News & General
Topic: Living off the interest VS Gobbling your nest egg in retrmnt
Replies: 44
Views: 6516

Re: Living off the interest VS Gobbling your nest egg in ret

However the unfortunate reality for most Americans is that they must gobble up their nest egg after they have finished sitting on it for the first 65 years of their lives like some kind of deranged cannibalistic chicken . Since a cannibal is any animal that eats its own kind, we must assume you are...
by Beagler
Sun Jul 08, 2012 9:54 pm
Forum: Investing - Theory, News & General
Topic: Do 2013 tax law changes affect fund placement rules?
Replies: 51
Views: 6312

Re: Do 2013 tax law changes affect fund placement rules?

Unless you make over $250,000 a year the Health Care Law will not change your Tax Situation at all. Untrue. "Starting in 2013, an extra 0.9% Medicare tax will be charged on: (1) salary and/or SE income above $200,000 for an unmarried individual , (2) combined salary and/or SE income above $250,000 ...
by Beagler
Sun Jul 08, 2012 7:55 pm
Forum: Investing - Theory, News & General
Topic: Do 2013 tax law changes affect fund placement rules?
Replies: 51
Views: 6312

Re: Do 2013 tax law changes affect fund placement rules?

Unless you make over $250,000 a year the Health Care Law will not change your Tax Situation at all. Untrue. "Starting in 2013, an extra 0.9% Medicare tax will be charged on: (1) salary and/or SE income above $200,000 for an unmarried individual , (2) combined salary and/or SE income above $250,000 ...
by Beagler
Sun Jul 08, 2012 7:46 pm
Forum: Investing - Theory, News & General
Topic: Slice and Dice better than 3-Fund for Rebalancing?
Replies: 29
Views: 2798

Re: Slice and Dice better than 3-Fund for Rebalancing?

You have to pay trading costs when all your slices trade with each other. Vanguard ETF's trade without fees via their brokerage service. Is there a fee to trade their mutual funds in a regular account? The funds have internal costs. So it's correct that on the VG platform there's no direct-to-the-i...
by Beagler
Sun Jul 08, 2012 6:15 pm
Forum: Investing - Theory, News & General
Topic: Slice and Dice better than 3-Fund for Rebalancing?
Replies: 29
Views: 2798

Re: Slice and Dice better than 3-Fund for Rebalancing?

yobria wrote:If two cars are travelling at 10 MPH, switching from one car to another can't make either car go any faster.
The salient point is, the cars do not always travel at like rates of speed.

The TLH benefits alone in taxable accounts make this approach worth considering.
by Beagler
Sun Jul 08, 2012 1:57 pm
Forum: Investing - Theory, News & General
Topic: Slice and Dice better than 3-Fund for Rebalancing?
Replies: 29
Views: 2798

Re: Slice and Dice better than 3-Fund for Rebalancing?

For those investors who don't wish to exclusively utilize a fund where 1/6 of their money is concentrated into only 10 stocks, S&D can provide both TLH and diversification opportunities. https://personal.vanguard.com/us/funds/ ... hist=tab:2
by Beagler
Sun Jul 08, 2012 1:01 pm
Forum: Investing - Theory, News & General
Topic: Slice and Dice better than 3-Fund for Rebalancing?
Replies: 29
Views: 2798

Re: Slice and Dice better than 3-Fund for Rebalancing?

555 wrote:You have to pay trading costs when all your slices trade with each other.
Vanguard ETF's trade without fees via their brokerage service. Is there a fee to trade their mutual funds in a regular account?
by Beagler
Sun Jul 08, 2012 12:55 pm
Forum: Investing - Theory, News & General
Topic: Active Passive Bet Year 6: Active Winning
Replies: 155
Views: 17360

Re: Active Passive Bet Year 6: Active Winning

Petro, congratulations on your Primecap win. It looks like you'll win the Windsor bet, too. It's Vanguard's opinion that its actively managed funds coexist peacefully with its managed funds. “They’re not oil and water but more like peanut butter and jelly.” Here's an article which you may have alrea...
by Beagler
Mon Jun 18, 2012 1:20 pm
Forum: Investing - Theory, News & General
Topic: Am I diversified and efficient with my $$$$?
Replies: 45
Views: 4367

Re: Am I diversified and efficient with my $$$$?

I don't care about tickers. I care about what's inside. What would a TSM investor do, exactly, if she "cared about what's inside" and found that she was concerned about the high concentration of Enron, Lehman, or wanted more diversity in her top 10 holdings (e.g., wasn't thrilled about having both ...
by Beagler
Sun Jun 17, 2012 3:56 pm
Forum: Investing - Theory, News & General
Topic: Low costs and VG's actively managed funds
Replies: 8
Views: 1336

Low costs and VG's actively managed funds

""As great as indexing is, we think there's a compelling case for Vanguard's approach to actively managing funds that is distinct from our competitors," said Dan Newhall, head of manager oversight and search within Vanguard Portfolio Review Department."

http://tinyurl.com/6udx8qr
by Beagler
Fri Jun 15, 2012 6:05 pm
Forum: Investing - Theory, News & General
Topic: Am I diversified and efficient with my $$$$?
Replies: 45
Views: 4367

Re: Am I diversified and efficient with my $$$$?

....diversify by holding as many income streams (more or less cap weighting, I get that I am not putting it exactly right) as possible? Income streams? We're talking about equities, not fixed income. Can we get another 100 posts on this, please? Perhaps you should re-read some of the prior posts fo...
by Beagler
Fri Jun 15, 2012 4:30 pm
Forum: Investing - Theory, News & General
Topic: Am I diversified and efficient with my $$$$?
Replies: 45
Views: 4367

Re: Am I diversified and efficient with my $$$$?

The orginal DFA stock fund, now called the Micro-cap fund, originally the Small Co. fund, (DFSCX), celebrated its 30th birthday last December. It has provided a slight excess return over the S&P 500 of .4%/year (before advisor fees), but at almost 50% higher risk, looking at 15 year standard deviat...
by Beagler
Fri Jun 15, 2012 6:12 am
Forum: Investing - Theory, News & General
Topic: Am I diversified and efficient with my $$$$?
Replies: 45
Views: 4367

Re: Am I diversified and efficient with my $$$$?

If you're already faced with limits on how much you cand diversify, why concentrate further? TSM appears to have a practical limit on the diversification it offers: subtract the bottom 1,000 (or even 2,000) stocks from the fund, and will its live returns vary much from the S&P 500? Probably not. TS...
by Beagler
Thu Jun 14, 2012 9:51 pm
Forum: Local Chapters and Bogleheads Community
Topic: My Experience / Lunch with Jack Bogle
Replies: 21
Views: 3305

Re: My Experience / Lunch with Jack Bogle

Thanks for sharing your experience! It must have been great to spend time with Mr. Bogle.
by Beagler
Thu Jun 14, 2012 9:38 pm
Forum: Investing - Theory, News & General
Topic: Am I diversified and efficient with my $$$$?
Replies: 45
Views: 4367

Re: Am I diversified and efficient with my $$$$?

The pretty charts say nothing about diversification. I disagree. Since TSM and the S&P 500 provide nearly-identical returns over time, I can add equities with different risk profiles. From a practical standpoint that seems more diverse to me. Well, don't invest in both TSM and S&P 500. :) Don't wor...
by Beagler
Thu Jun 14, 2012 8:57 pm
Forum: Investing - Theory, News & General
Topic: Am I diversified and efficient with my $$$$?
Replies: 45
Views: 4367

Re: Am I diversified and efficient with my $$$$?

The pretty charts say nothing about diversification. I disagree. Since TSM and the S&P 500 provide nearly-identical returns over time, I can add equities with different risk profiles. From a practical standpoint that seems more diverse to me. Personally, I view diversification in terms of the parti...
by Beagler
Thu Jun 14, 2012 7:18 pm
Forum: Investing - Theory, News & General
Topic: The First DFA Small Cap Fund, 30 years on
Replies: 10
Views: 1765

Re: The First DFA Small Cap Fund, 30 years on

It's not a fund I follow, but (speaking of birthdays) $10k invested on its date of birth has grown as follows:
Image
by Beagler
Thu Jun 14, 2012 7:10 pm
Forum: Investing - Theory, News & General
Topic: Am I diversified and efficient with my $$$$?
Replies: 45
Views: 4367

Re: Am I diversified and efficient with my $$$$?

I look at diversification as a way to fire on all multifactor cylinders, rather than a 1-cylinder beta-only portfolio. Personally, I'd prefer to spread the $1 among more than large-caps. (Just because "the market" thought Lehman and Enron were swell, I'd rather not concentrate my portfolio that much...
by Beagler
Thu Jun 14, 2012 2:08 pm
Forum: Investing - Theory, News & General
Topic: Am I diversified and efficient with my $$$$?
Replies: 45
Views: 4367

Re: Am I diversified and efficient with my $$$$?

Market weighting is not a magic bullet that insulates investors from loss. It is simply the key to ensuring your portfolio does no better and no worse than the market as a whole. It's a bit of circular reasoning: cap-weighting is one version of "the market" (and not "the economy"), so a market-cap-...
by Beagler
Thu Jun 14, 2012 8:49 am
Forum: Investing - Theory, News & General
Topic: Am I diversified and efficient with my $$$$?
Replies: 45
Views: 4367

Re: Am I diversified and efficient with my $$$$?

TSM: a fund which concentrated 17% of assets into only 10 stocks.
by Beagler
Wed Jun 13, 2012 5:30 pm
Forum: Investing - Theory, News & General
Topic: The First DFA Small Cap Fund, 30 years on
Replies: 10
Views: 1765

Re: The DFA Small Cap Fund, 30 years on

Happy 30th birthday to DFSTX, which celebrated the end of its youth in March, 2012... DFSTX inception on 3/19/1982 Sources: DFA website, Compustat, Morningstar. I'd appreciate an independent verification of the S&P number, though the DFA number is right off their site. Both the DFA site and M* say ...