Search found 4381 matches

by afan
Sun Jan 09, 2011 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Merill Lynch Versus Vanguard
Replies: 30
Views: 8444

That is not even the tip of the iceberg of ML legal troubles. That is simply typical of firms that employ brokers to hawk investments. ML, in particular- nearly went bankrupt, illegally paid massive bonuses (with taxpayer money) to the executives who had made the bailout necessary, still in up to th...
by afan
Fri Jan 07, 2011 5:55 am
Forum: Investing - Theory, News & General
Topic: Who really owns and controls Vanguard?
Replies: 58
Views: 24942

Just to be clear, you CAN "vote on Vanguard management" what you cannot do is vote on corporate ballots of the stocks owned by the Vanguard funds. I have voted on proposed changes in Vanguard management related to my funds.
by afan
Fri Jan 07, 2011 5:53 am
Forum: Investing - Theory, News & General
Topic: Who really owns and controls Vanguard?
Replies: 58
Views: 24942

I'm not sure I want my mutual fund company dragged into endless political battles about some of the social issues that appear on proxy ballots. People are passionate, on both sides, about things like global warming. Getting Vanguard into the middle of it would raise costs, embroil it in controversy,...
by afan
Tue Jan 04, 2011 6:12 pm
Forum: Investing - Theory, News & General
Topic: Fund Managers Missing Their Marks, by a Lot - Active vs Pas
Replies: 12
Views: 2026

Re: Sauter, He seemed to be as close to saying "index only, active management is for suckers" as an employee of a company with billions of dollars of actively managed funds could get. The challenge is realistically convincing yourself that these superior managers exist and that you can identify them...
by afan
Sun Jan 02, 2011 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Filing Sched A? Not until mid-late Feb you aren't!
Replies: 9
Views: 2175

Livesoft,

Great idea. Just don't forget to correct the withholding for the remainder of the year.

But are their any Bogleheads who get refunds?
by afan
Sun Jan 02, 2011 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: Home equity line as emergency fund question?
Replies: 11
Views: 1697

I have to take a different approach. We have had a HELOC for years in case of emergency. Never used it. We ALSO have an emergency fund. Never used that either. The HELOC was free- no fees to apply, no fees to establish the line, no fees to keep it open. So no downside. Having the credit line could h...
by afan
Sat Jan 01, 2011 6:24 am
Forum: Personal Investments
Topic: Treasuries: Duration vs. Taxation Question
Replies: 8
Views: 1198

Longer duration funds are more sensitive to interest rates, so there is a higher chance of capital gains and losses. If these occur they have tax implications.
by afan
Fri Dec 31, 2010 2:57 pm
Forum: Investing - Theory, News & General
Topic: Securities Lending Lawsuits/ Risks of Securities Lending
Replies: 19
Views: 2478

I suppose, but the returns on supersafe short term T bills are near zero right now. Hardly seems worth the effort. In order to make some money on lending, the cash has to be invested in something, and that thing either pays almost nothing (T-bills) or has some risk. In investing in a stock fund one ...
by afan
Fri Dec 31, 2010 10:04 am
Forum: Investing - Theory, News & General
Topic: Securities Lending Lawsuits/ Risks of Securities Lending
Replies: 19
Views: 2478

According to the article, Calpers dealt with Wachovia and Wachovia made risky investments. So DFA gets more money from lending because it does more lending? It has more opportunity because it holds more small and micro cap stocks. These are relatively illiquid, hence the market for lending is less c...
by afan
Thu Dec 30, 2010 8:29 pm
Forum: Investing - Theory, News & General
Topic: Securities Lending Lawsuits/ Risks of Securities Lending
Replies: 19
Views: 2478

If there is no free lunch, and risks are correctly estimated, then securities lending should pay an amount appropriate to the real risk. If the risk is underestimated, then the revenue might be much smaller than the risk. It seems Calpers found the reward not worth the risk [quote]The California Pub...
by afan
Thu Dec 30, 2010 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: How Do You File Your Federal Tax Return?
Replies: 46
Views: 6135

On software installed on my computer, printed, mail. Prefer to mail because it is slower (always have tax due, can take them several days to deposit the check), and it is slower and more expensive for the IRS to scan in the paper form than to get it via efile. Looking for paper that resists OCR, and...
by afan
Sat Dec 25, 2010 10:46 pm
Forum: Personal Finance (Not Investing)
Topic: Father-in-Law advisor [continued]
Replies: 131
Views: 13234

Eventually for estate planning you may end up having to split things up anyway. If the wife has assets that were gifts from her dad, and he is the "investment professional", then keeping them separate, and letting him manage them, seems logical. It will keep peace in the family, and show him the gra...
by afan
Sun Dec 19, 2010 7:56 pm
Forum: Investing - Theory, News & General
Topic: Active Share and Mutual Fund Performance
Replies: 9
Views: 2452

Did anyone see where they compared the actual performance of the funds to the implied performance based on the quarterly reported holdings? This does not appear to account for when the stocks were purchased. They seem to assume that the deviations from the index was effectively captured by the repor...
by afan
Sat Dec 18, 2010 5:16 pm
Forum: Personal Consumer Issues
Topic: Best Men's Suit Brand - Value and Quality
Replies: 120
Views: 25452

To get back to what to pay for suits. It depends. If you are in a line of work where you not only have to wear suits, Then you have to have a number of them, they have to last, and they have to look appropriate for your job. In some jobs the people with whom you work will notice whether you wear exp...
by afan
Sat Dec 18, 2010 10:31 am
Forum: Investing - Theory, News & General
Topic: Warren Buffett on Index Funds
Replies: 32
Views: 7182

Didn't Graham die around the time the first index funds were created? How could he have an opinion on their actual performance? Did he mean "If they existed, low cost index funds would be the most sensible investment"?
by afan
Thu Dec 16, 2010 6:20 pm
Forum: Personal Consumer Issues
Topic: Best Operating System for an old computer
Replies: 45
Views: 4794

If they already know how to use XP, then staying with XP certainly will have less learning than switching to anything else. Switching to Windows 7 might be easier than switching to Linux. You can certainly do a dual boot, Ubuntu and XP, or run Unbuntu from a flash drive, and let them see which they ...
by afan
Thu Dec 16, 2010 1:37 pm
Forum: Investing - Theory, News & General
Topic: DFA Funds
Replies: 125
Views: 46380

Is there any room in the DFA system for someone like me who knows that he could never give trading authority to anyone? I have tried, and I just cannot do it. I could consider having an advisor who did exactly that, provide advice, for a fee. I could not tell the advisor to make the actual rebalanci...
by afan
Wed Dec 15, 2010 6:13 pm
Forum: Investing - Theory, News & General
Topic: DFA Funds
Replies: 125
Views: 46380

Multifactor, That was a very informative post. Are those nominal returns, or risk adjusted? If the latter, are they single, 3 or 4 factor adjusted? I assume these figures are pretax and before the advisor fees? Do you have comparable figures for returns in a taxable account? For an individual invest...
by afan
Tue Dec 14, 2010 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Father-in-Law advisor [continued]
Replies: 131
Views: 13234

Don't play games. Do not engage in a debate of active vs passive management. Do not discuss the possibility that he might manage your assets. If he is truly a successful money manager that means he is a salesman, and a good one. Engaging in discussion on these topics will make you appear to be fooli...
by afan
Mon Dec 13, 2010 6:38 pm
Forum: Investing - Theory, News & General
Topic: Gauranteed? Remember, your balance may be "ficticious&
Replies: 24
Views: 3272

I'm no securities lawyer, but I gather some investors did get some money from SIPC. It seemed to revolve around how much they put in, how much they took out, and whether they had invested directly with Madoff, or through a feeder fund. Each direct investor was at least eligible. But that meant that ...
by afan
Sun Dec 12, 2010 6:46 pm
Forum: Investing - Theory, News & General
Topic: Gauranteed? Remember, your balance may be "ficticious&
Replies: 24
Views: 3272

I am afraid I do not understand the complaint. All insurance policies cover specific risks. No one makes a policy that insures against any possible outcome. If one were to make a policy that would pay off for "losses" generated when a criminal simply makes up investment returns, it would cost a fort...
by afan
Mon Dec 06, 2010 5:12 pm
Forum: Investing - Theory, News & General
Topic: How-to recipe for calculating efficient frontier?
Replies: 10
Views: 2058

If you are trying to do this as an exercise, to enhance your understanding of how it would be done, then the links provided would help. If you have the math and coding skills to do it yourself, then the original finance literature goes into bleeding detail, as would an advanced text in finance, as w...
by afan
Fri Dec 03, 2010 6:45 am
Forum: Investing - Theory, News & General
Topic: A Dying Banker's Last Financial Instructions
Replies: 92
Views: 16177

I hesitate to resurrect the active/passive part of this thread, but in response to the assertions that no one has tested the performance of individual investors vs passive benchmarks, what about Odean's publications? They seem to confirm the superiority of passive investing to the results of individ...
by afan
Fri Dec 03, 2010 6:30 am
Forum: Investing - Theory, News & General
Topic: The Demise of the 4% Safe Withdrawal?
Replies: 54
Views: 8325

Wade, Interesting story. The risk appears to be having all your assets in a poorly performing economy. It seems the results you present assume 100% allocation to a single country. This would be difficult do today, even if one tried. Do you have the data to calculate success rates by investing in a g...
by afan
Fri Dec 03, 2010 6:03 am
Forum: Investing - Theory, News & General
Topic: WSJ: Muni tax exemption in jeopardy
Replies: 28
Views: 3624

Rather than liquidate, they would likely roll the tax exempt funds into taxable. Bond fund investors presumably still want the income component of their portfolios, and once there were no new tax exempt bonds everyone would be in taxables. I agree it is hard to believe them actually doing this. Ther...
by afan
Tue Nov 30, 2010 12:14 am
Forum: Investing - Theory, News & General
Topic: correlations stocks and CCF
Replies: 13
Views: 2311

I am still unclear on how investable these indexes may be. The problems with OIL are well documented. How do the other commodities ETF's behave? One could assume rolling over futures on ones own, but without actual data, not just returns to the hypothetical index, it remains a question. It is true t...
by afan
Sun Nov 28, 2010 7:06 am
Forum: Investing - Theory, News & General
Topic: correlations stocks and CCF
Replies: 13
Views: 2311

Was GSCI investable during most of that time? How? Is this assuming investors could capture the full return of the index? Doing this manually? What tracking error and cost? Is this assuming buying futures?
by afan
Fri Nov 26, 2010 10:37 am
Forum: Investing - Theory, News & General
Topic: An advisor that lowers your cost?
Replies: 9
Views: 1614

I don't know anything about this firm, but your post suggests a strategy for investigation. In order for the conversion from admiral to institutional shares to save you $1,000 annually, you would need to have a couple million invested. This is based on TSM, for other funds the calculation might be s...
by afan
Sat Oct 16, 2010 7:48 pm
Forum: Investing - Theory, News & General
Topic: "Your Age in Bonds" vs. Sustainable Withrawal AA
Replies: 9
Views: 2320

Neither the age in bonds nor the 4% rate take into account income needs. Someone who needs every penny has to worry, a lot, about stock losses that could take them below a sustainable asset level. They may need to take very conservative positions, and reduce their consumption to fit. People lucky en...
by afan
Tue Oct 12, 2010 1:31 pm
Forum: Investing - Theory, News & General
Topic: What Now For High Value Vanguard Investors
Replies: 100
Views: 17480

Yeah, if they keep improving the service and cutting the price I may decide I have had enough of Vanguard and go somewhere where they charge enough to make me feel wanted.
by afan
Tue Oct 12, 2010 12:18 pm
Forum: Investing - Theory, News & General
Topic: Paying down mortgage vs. investing in bonds?
Replies: 32
Views: 6100

Well, 4.25 is a historically low mortgage rate. If bond prices drop in the future, then you might wish you were still borrowing at this rate, and that you had not put money into longer term bonds. If these low rates persist for years, then there would be some advantage to paying off the mortgage, bu...
by afan
Tue Oct 12, 2010 12:13 pm
Forum: Investing - Theory, News & General
Topic: What Now For High Value Vanguard Investors
Replies: 100
Views: 17480

I doubt you ever will see an advisor with such a fee schedule. Everyone knows the deviations from the market are overwhelmingly due to chance. For an advisor to agree to manage with their compensation based ONLY on superior returns would be to be on a long run of luck. Could happen, but not likely. ...
by afan
Fri Oct 08, 2010 4:18 pm
Forum: Investing - Theory, News & General
Topic: Should Investors Sue Vanguard over AllianceBernstein
Replies: 13
Views: 3305

You have to admit, the idea of an "expert at picking funds, but only those from Vanguard" is good for a laugh....
by afan
Thu Oct 07, 2010 8:04 pm
Forum: Investing - Theory, News & General
Topic: Top 5 Tips to Build Wealth and Success-madoff due diligence
Replies: 13
Views: 2085

It seems to me that Markopolis asked a number of questions that the SEC should have resolved in its investigation. So one can certainly complain about the performance of regulators. I agree with the suspicion that no investigator could be so incompetent as to miss the fact that he never made any tra...
by afan
Wed Oct 06, 2010 4:40 pm
Forum: Investing - Theory, News & General
Topic: What Now For High Value Vanguard Investors
Replies: 100
Views: 17480

Honest, highly efficient, excellent service, low cost, no gimmicks. NO ONE CALLING ME TO HAWK INVESTMENTS. Here and there someone might tie, or even beat, Vanguard prices on one fund or another. But across the board, day in and day out, I don't know of any company that comes close. What else I might...
by afan
Wed Oct 06, 2010 4:34 pm
Forum: Investing - Theory, News & General
Topic: Losses From Following Yale's David Swensen
Replies: 51
Views: 6604

Universities are REQUIRED to spend money from their endowments. This is both due to tax law, and sabre rattling from Grassley complaining about them accumulating large endowments without spending it. As was noted above, they usually spend 4-5% of assest per year. Since they have to do this, they nee...
by afan
Tue Oct 05, 2010 8:15 pm
Forum: Investing - Theory, News & General
Topic: Pension funds: OK to invest in hedge/private equity funds?
Replies: 28
Views: 2099

Thanks for pointing me to Lerner. So far I find his work on venture capital, but not on privat equity managers. He reports that venture capitalists do have evidence of performance persistence, but not a very strong effect "all else equal, a venture-capital-backed entrepreneur who succeeds in a ventu...
by afan
Tue Oct 05, 2010 12:00 pm
Forum: Investing - Theory, News & General
Topic: Pension funds: OK to invest in hedge/private equity funds?
Replies: 28
Views: 2099

Does anyone know of DATA on performance persistence and survivorship bias for private equity managers? I know that Yale uses them, and that Swenson has put them in the category of good for endowments but not available to individual investors. However, I have not seen anything approaching the kind of...
by afan
Mon Oct 04, 2010 5:42 am
Forum: Investing - Theory, News & General
Topic: Paul and Vicki Terhorst
Replies: 28
Views: 7833

I have not read the book, so perhaps I misunderstood the above comments. From this thread it sounds like this person's old answer to the question was "I talk on the phone" the new answer is "Nothing" Hardly my goal in life. I hope to work the rest of my life. If I find my current job is not accompli...
by afan
Sat Oct 02, 2010 9:31 am
Forum: Investing - Theory, News & General
Topic: Selling Winners/Losers separately within a mutual fund?
Replies: 14
Views: 2032

I'm one of those who lives like a child of the depression, never paid a barber, for example. But splitting up mutual fund holdings to control tax losses and gains sounds like an unproductive time sink. This is one of the few reasons to hold individual stocks. By matching them to your favorite index,...
by afan
Thu Sep 23, 2010 4:58 pm
Forum: Investing - Theory, News & General
Topic: Index Funds' Performance vs. Hedge Funds?
Replies: 36
Views: 5501

In the ABC's of Hedge Funds, they find alpha after accounting for survivorship and backfill bias. However, as I read it, they do not address funds that, while not "dead" simply stop reporting. Does anyone know whether the authors assumed these funds were dead, or omitted them from the analysis?
by afan
Thu Sep 09, 2010 12:40 pm
Forum: Investing - Theory, News & General
Topic: Correlation Frustrates Top Stock Pickers
Replies: 15
Views: 2685

Interesting that correlations between actively managed funds and the indexes are higher now than in the past, but this is hardly an explanation for why active managers are underperforming index funds. Active managers always underperform index funds over any substantial period of time. There are almo...
by afan
Fri Sep 03, 2010 9:07 pm
Forum: Investing - Theory, News & General
Topic: Investing skill vs luck?
Replies: 34
Views: 4737

You are comparing assets that are themselves less variable in their returns (fixed income) to those that are more variable (stocks). This difference is not due to the efficiency of the market, but the underlying characteristics of the assets. If you did the "single asset" portfolios for fixed income...
by afan
Fri Sep 03, 2010 5:10 pm
Forum: Investing - Theory, News & General
Topic: Indexing is bogus [according to Cramer]
Replies: 52
Views: 9417

I find him unwatchable. It not just that the show is devoted entirely to stock-picking, which is pointless. I just cannot stand his act. Apparently his overall record is much worse than passive investing. If it is not profitable, some people must find it entertaining. http://online.barrons.com/artic...
by afan
Fri Sep 03, 2010 12:31 pm
Forum: Investing - Theory, News & General
Topic: Investing skill vs luck?
Replies: 34
Views: 4737

docneil An undiversified portfolio is one that deviates from the market portfolio. The greater the deviation, the less diversified. One can have a highly undiversified portfolio with a large number of securities if they are systematically correlated with one another. As you indicate, fixed income fu...
by afan
Thu Sep 02, 2010 9:14 pm
Forum: Investing - Theory, News & General
Topic: Investing skill vs luck?
Replies: 34
Views: 4737

The dispersion between first and third quatile tells you the extent to which managers hold undiversified portfolios, but what does that have to do with whether the market is efficient? If growth stock managers place large bets on small numbers of companies, if they concentrate their holdings in a sm...
by afan
Wed Sep 01, 2010 4:15 pm
Forum: Investing - Theory, News & General
Topic: Magazines & Newsletters
Replies: 19
Views: 4097

I get the AAII journal. The stockpicking articles are silly, of course, but they have good articles on insurance, estate planning, and the other financial things one should worry about after giving up on beating the market.
by afan
Wed Sep 01, 2010 2:27 pm
Forum: Personal Investments
Topic: Mother passed away. Need investment advice. Please help.
Replies: 50
Views: 6543

Just a couple of points. It is worth checking both the stability of the insurance company and the provisions of your state insurance fund. If the company were to fail it is likely that you would receive some protection from the state, but the exact amount varies with the kind of policy and the state...
by afan
Wed Sep 01, 2010 2:09 pm
Forum: Investing - Theory, News & General
Topic: Investing skill vs luck?
Replies: 34
Views: 4737

Does this mean that indexers should stop announcing to the world that their approach is better? As long as there are enough active managers, things are fine. If everyone gave up on active management then the market might cease to be efficient. So if you index, keep it to yourself. In fact, encourage...