Search found 5210 matches

by JoMoney
Sun Apr 27, 2014 3:37 pm
Forum: Investing - Theory, News & General
Topic: Wide Moat ETF as a portion of stock allocation
Replies: 29
Views: 6891

Re: Wide Moat ETF as a portion of stock allocation

...My point was just that some stocks are reliably more volatility than others. Either they can be expected to have higher returns or they can't. If they can, investors can get better expected absolute returns than the market by tilting towards the volatile stocks. If they can't, investors can impr...
by JoMoney
Sun Apr 27, 2014 3:13 pm
Forum: Investing - Theory, News & General
Topic: Poll: Would you EVER recommend 100% equity?
Replies: 136
Views: 33690

Re: Poll: Would you EVER recommend 100% equity?

I would not recommend 100% equities. Stocks have historically provided the highest returns of any asset class, but if you bought 100% stocks in early 1966, you would not have made any significant profit until 1983. Seventeen years is a long time. This to me is the worst case scenario. IMO a big cra...
by JoMoney
Sun Apr 27, 2014 4:15 am
Forum: Investing - Theory, News & General
Topic: Wide Moat ETF as a portion of stock allocation
Replies: 29
Views: 6891

Re: Wide Moat ETF as a portion of stock allocation

...We know that different kinds of stocks have different levels of volatility. If all stocks had the same expected returns, an investor could reduce risk without reducing expected returns by buying low volatility stocks. So there would still be a free lunch! Why not? Isn't there evidence of "anomal...
by JoMoney
Sun Apr 27, 2014 1:33 am
Forum: Investing - Help with Personal Investments
Topic: Worst Case Scenario, How Far Could Limited Term Drop?
Replies: 13
Views: 2560

Re: Worst Case Scenario, How Far Could Limited Term Drop?

I use the Vanguard Short-Term Bond index fund for some of my savings. I've had it setup that way quite a while, and enjoy the easy access of being able to electronically transfer funds to/from my checking account without waiting for settlement (like an ETF would). You can even setup check-writing di...
by JoMoney
Sat Apr 26, 2014 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: selling covered calls to generate income
Replies: 9
Views: 1632

Re: selling covered calls to generate income

I would suggest just buying a index fund and selling whatever shares you needed to fulfill the income needs beyond the dividends. It's a whole lot simpler and doesn't require any additional turnover, tax issues, or brokerage fees. There are indexes and ETF's that attempt various strategies of sellin...
by JoMoney
Sat Apr 26, 2014 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Where are the Opportunities now ?
Replies: 37
Views: 4499

Re: Where are the Opportunities now ?

My take would be to follow the advice of Warren Buffet and Jack Bogle. If you're not going to be a professional investor trying to make a living at this, then you shouldn't be trying to make these kinds of decisions. Most of the professionals who try to do this fail to outperform the market. The peo...
by JoMoney
Sat Apr 26, 2014 9:04 pm
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 105
Views: 19989

Re: Another take on the "rebalancing bonus"

...Two roads to Dublin? That would be my take on it. The way I see it, re-balancing is akin to contrarian traders, buy-and-hold is akin to momentum traders, they will experience different results over different periods and will have different natures on how the style is rewarded or punished. These ...
by JoMoney
Sat Apr 26, 2014 8:46 pm
Forum: Investing - Theory, News & General
Topic: Poll: Would you EVER recommend 100% equity?
Replies: 136
Views: 33690

Re: Poll: Would you EVER recommend 100% equity?

...If a young investor makes two million a year, she should be happy with an all stock portfolio. A retiree who saved her entire life to get to two million probably should not. What if the young investor has a job as a hedge-fund operator and their income is tied very much to the performance of the...
by JoMoney
Sat Apr 26, 2014 8:32 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth: "Don't Buy It" (AARP Magazine)
Replies: 21
Views: 8548

Re: Allan Roth: "Don't Buy It" (AARP Magazine)

...Where they are being less than forthright is in the details and properties of the investments. It is a very rare oil well that lasts for thirty years; 10-20 is more typical and these new fangled "fracked" wells often don't last for more than five years. As Allan Roth did point out, they assume f...
by JoMoney
Sat Apr 26, 2014 8:21 pm
Forum: Personal Finance (Not Investing)
Topic: One Penny Tax Refund
Replies: 8
Views: 1941

Re: One Penny Tax Refund

livesoft wrote:... I collected more than $1 in change from various sidewalks and vending machine coin returns that folks left, so I guess I came out ahead anyways.
How do you report the money you find on sidewalks on your tax return? Is it considered "earned income"? :D
by JoMoney
Sat Apr 26, 2014 7:51 pm
Forum: Investing - Theory, News & General
Topic: Poll: Would you EVER recommend 100% equity?
Replies: 136
Views: 33690

Re: Poll: Would you EVER recommend 100% equity?

Something else to consider is what types of bonds someone is using if they're being recommended for how "less risky" they are. The past couple years have not been very good for intermediate and longer term bonds, and someone who needed their "safe" bonds in the 2009 crisis might have been very disap...
by JoMoney
Sat Apr 26, 2014 7:09 pm
Forum: Investing - Theory, News & General
Topic: Poll: Would you EVER recommend 100% equity?
Replies: 136
Views: 33690

Re: Poll: Would you EVER recommend 100% equity?

...Let's start saying how many dollars of equity risk we have. :twisted: I think this issue will clear up quicker. Dollar figures is ridiculous as well. A million dollars in stocks means a lot less if someone has a billion dollar portfolio. “If you've got a dollar and you spend 29 cents on a loaf o...
by JoMoney
Sat Apr 26, 2014 4:15 pm
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 105
Views: 19989

Re: Another take on the "rebalancing bonus"

Another takeaway when looking at periods like 1972-2013 should be that interest rates over much of that period were marked by extremely high rates going to low rates. I would have serious doubts about interest rates (and even inflation) having the same relationship and going in the same general dire...
by JoMoney
Fri Apr 25, 2014 11:41 pm
Forum: Investing - Theory, News & General
Topic: Higher Risk, Higher Rewards than a Stock Index Fund
Replies: 50
Views: 13152

Re: Higher Risk, Higher Rewards than a Stock Index Fund

...I was thinking about this recently. There's a sense in which it's a zero sum game and a sense in which it isn't. Suppose that investors discover that the market has a certain kind of bias. Maybe it tends to invest too much in biotech and not enough in consumer staples. So a group of investors de...
by JoMoney
Fri Apr 25, 2014 10:26 pm
Forum: Investing - Theory, News & General
Topic: Higher Risk, Higher Rewards than a Stock Index Fund
Replies: 50
Views: 13152

Re: Higher Risk, Higher Rewards than a Stock Index Fund

... JoMoney: Your point is well taken that maximizing risk doesn't necessarily equate to maximized returns. Risk aside, what is your suggestion for maximizing returns?... My advice is to work on improving yourself and to earn more doing whatever service you do for society. You'll earn more and can ...
by JoMoney
Fri Apr 25, 2014 7:36 pm
Forum: Investing - Theory, News & General
Topic: Higher Risk, Higher Rewards than a Stock Index Fund
Replies: 50
Views: 13152

Re: Higher Risk, Higher Rewards than a Stock Index Fund

The most successful long-term investors I've heard of have had a strong focus on carefully avoiding risk... NOT in trying to maximize it. Often times, the game is won by simply avoiding the biggest mistakes. There is a fine line between taking enough risk, and so much that irreparable damage is don...
by JoMoney
Fri Apr 25, 2014 6:37 pm
Forum: Investing - Theory, News & General
Topic: Poll: Would you EVER recommend 100% equity?
Replies: 136
Views: 33690

Re: Would you EVER recommend 100% equity?

http://johncbogle.com/wordpress/wp-content/uploads/2011/09/NMS-9-12-12.pdf ...John M. Templeton, Dartmouth Professor Peter Williamson, and Charles R. Schwab were all true believers in equities. Templeton was unequivocal: “ invest 100 percent in common stocks .” (The 6.9 percent annual return on his...
by JoMoney
Fri Apr 25, 2014 9:10 am
Forum: Investing - Help with Personal Investments
Topic: Question on Reported Returns
Replies: 6
Views: 634

Re: Question on Reported Returns

OK, so here's what I don't understand. When I've compared funds from other companies to Vanguard's, they frequently report a higher return. Yet if the ERs have already been accounted for, wouldn't that support the argument that, despite the higher ERs, managed funds are worth it? Vanguard has funds...
by JoMoney
Fri Apr 25, 2014 2:30 am
Forum: Investing - Theory, News & General
Topic: Mel's Unloved Mid-Caps Finally Getting Some Respect
Replies: 46
Views: 6831

Re: Mel's Unloved Mid-Caps Finally Getting Some Respect

I kind of remember that the current Primecap fund started out as a midcap fund. Is that true? It's an actively managed fund that includes both large and mid-cap. I'm pretty sure their style drifts at different times based on what companies the managers are focused on. They use several managers that...
by JoMoney
Thu Apr 24, 2014 4:11 pm
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 105
Views: 19989

Re: Another take on the "rebalancing bonus"

There's another point, which is that during those many years I rebalanced a lot, because I was invested in funds that moved a lot relative to each other: Washington REIT, Lexington Goldfund, Scudder International, ... Good point. David Swenson rebalances individual holdings on a daily basis. That w...
by JoMoney
Thu Apr 24, 2014 3:38 pm
Forum: Investing - Theory, News & General
Topic: Mel's Unloved Mid-Caps Finally Getting Some Respect
Replies: 46
Views: 6831

Re: Mel's Unloved Mid-Caps Finally Getting Some Respect

One thing to note, is that Vanguard's "Mid Cap" Index changed indexes over time. Once upon a time it tracked the S&P400 Mid-Cap Index which has a much smaller average market cap According to Morningstar: Vanguard S&P Mid-Cap 400 Index ETF IVOO - Avg Market Cap USD: 4,639 Mil Vanguard Mid-Cap ETF VO ...
by JoMoney
Thu Apr 24, 2014 3:29 pm
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 105
Views: 19989

Re: Another take on the "rebalancing bonus"

...In a bull market like 2013, who cares? (It actually feels good to take a little money off the table where you have won.) In a bear market, you're likely to be slow to reap the full deficit. And, in a sideways market, it's a nice little kicker... And if it helps you to "Stay The Course" , then it...
by JoMoney
Thu Apr 24, 2014 7:33 am
Forum: Personal Consumer Issues
Topic: Where would you retire, if $ were no object?
Replies: 89
Views: 21971

Re: Where would you retire, if $ were no object?

...Winter in Melbourne.... ...I'm guessing you mean Summer in Melbourne (..but I suppose it's the same time of year as Northerner's think of as " Winter "...) 95-degree Fahrenheit on Christmas day is an unusual experience when all the T.V. shows are about snow-flake wonder-lands with news clips abo...
by JoMoney
Thu Apr 24, 2014 6:56 am
Forum: Investing - Theory, News & General
Topic: What % of stock market "drive" is gambling?
Replies: 44
Views: 6536

Re: What % of stock market "drive" is gambling?

... what about the derivatives markets in options and stock futures... it's been "joked" that the New York Stock Exchange is really driven from Chicago. The derivatives markets have been shown to drive a large portion of the day to day market activity, and are purely speculation about future prices ...
by JoMoney
Thu Apr 24, 2014 6:47 am
Forum: Investing - Theory, News & General
Topic: Vanguard Small Cap Index Inv (NAESX) - Questions...
Replies: 30
Views: 5131

Re: Vanguard Small Cap Index Inv (NAESX) - Questions...

...and if you're certain you want something that tracks the Russell-2000, you can purchase the Vanguard Russell 2000 ETF (VTWO) without any brokerage fee if you hold your account with Vanguard Brokerage Services.
This would be an ETF, not a proper mutual fund though.
by JoMoney
Thu Apr 24, 2014 6:39 am
Forum: Personal Consumer Issues
Topic: Dilbert Mints
Replies: 40
Views: 4139

Re: Dilbert Mints

The excite-mint over this thread makes me think there's a Boglehead product that could be made. Maybe someone would take it on consign-mint ?
Might be worthwhile... it would just take a little refine-mint
by JoMoney
Thu Apr 24, 2014 5:58 am
Forum: Investing - Theory, News & General
Topic: Wide Moat ETF as a portion of stock allocation
Replies: 29
Views: 6891

Re: Wide Moat ETF as a portion of stock allocation

The index gets updated every quarter, so it's not exactly buy and hold if you buy the individual stocks. I think I would still agree with Bernston on just buying the shares individually. Bear in mind "Expense Ratios" don't include the transaction/brokerage costs for a fund to trade/turnover stocks,...
by JoMoney
Wed Apr 23, 2014 7:59 am
Forum: Investing - Theory, News & General
Topic: FYI..W.Buffett on Bloomberg at 3 Today
Replies: 8
Views: 680

Re: FYI..W.BUFFETT ON BLOOMBERG AT 3 TODAY

No idea what time it airs, but apparently he'll be on CNBC's "Street Signs" as well:
http://www.cnbc.com/id/101603518
by JoMoney
Wed Apr 23, 2014 4:21 am
Forum: Investing - Theory, News & General
Topic: Does Asset Allocation beat the S&P 500?
Replies: 75
Views: 9672

Re: Does Asset Allocation beat the S&P 500?

Personally, I follow a Buffett model/suggested portfolio, but the low bond allocation, and the lack of international is considered a bit heretical around here. Link to Morningstar chart showing various model portfolios and what DID happen, but not necessarily what will occur in the future. Do you w...
by JoMoney
Tue Apr 22, 2014 4:10 pm
Forum: Investing - Theory, News & General
Topic: Does Asset Allocation beat the S&P 500?
Replies: 75
Views: 9672

Re: Does Asset Allocation beat the S&P 500?

...Assett allocation is not a panacea. It is a reasoned -if imperfect- approach to the inevitable uncertainty of the financial markets... Different people are going to pick different "allocations", those allocations are going to track differently over different periods of time. Past performance is ...
by JoMoney
Tue Apr 22, 2014 3:24 pm
Forum: Investing - Theory, News & General
Topic: Why is the price so low for option? Is this real?
Replies: 21
Views: 1872

Re: Why is the price so low for option? Is this real?

Maybe it's an option traded very infrequently... could it be that you're just looking at the last price that option traded for, but if you actually put in a bid it would not execute at that price... ?
by JoMoney
Tue Apr 22, 2014 3:17 pm
Forum: Investing - Theory, News & General
Topic: Is 1800s stock market data even relevant?
Replies: 63
Views: 6476

Re: Is 1800s stock market data even relevant?

..."cash", as we know it, was not even the same ... think bank script, individual state currencies, etc versus the federal reserve notes of today. This is interesting, it does complicate the whole idea of comparing various assets since the dollar was pegged to silver/gold and how people valued thei...
by JoMoney
Tue Apr 22, 2014 7:55 am
Forum: Investing - Theory, News & General
Topic: Is 1800s stock market data even relevant?
Replies: 63
Views: 6476

Re: Is 1800s stock market data even relevant?

I wonder if active managers had an advantage over passive investors back then. Or if there were inefficiencies in the market that could have been exploited. Unclear there were "passive" investors in the sense we have now, ie index fund type portfolios. My understanding is that trading was much less...
by JoMoney
Tue Apr 22, 2014 7:13 am
Forum: Investing - Theory, News & General
Topic: Is 1800s stock market data even relevant?
Replies: 63
Views: 6476

Re: Is 1800s stock market data even relevant?

The first thing that comes to mind as to why it might be relevant, is the markets tendency to exhibit mean-reversion, and the so called "Siegel Constant" of the U.S. stock market returning an inflation adjusted 6.6% return over long periods of time. The longer the period of time, the more convincing...
by JoMoney
Tue Apr 22, 2014 6:38 am
Forum: Investing - Help with Personal Investments
Topic: what do you suggest for reading?
Replies: 15
Views: 1772

Re: what do you suggest for reading?

livesoft wrote:...Follow-up bonus question (hard): Why does livesoft own FUSVX instead of FSTVX? :)
oooh oooh ooh <raises hand and blurts out guess> working around 'wash sale rule' in tax loss harvesting?
by JoMoney
Tue Apr 22, 2014 6:21 am
Forum: Investing - Theory, News & General
Topic: Does RSP performance offset it's expense ratio? [Guggenheim S&P 500 Equal Weight]
Replies: 17
Views: 5311

Re: Does RSP performance offset it's expense ratio?

No. RSP does not add anything to offset its expense ratio. It tracks its index, the " S&P 500 Equal Weight Index " , but does so only after the higher .40% expense ratio and additional expenses do to the turnover costs of that index. Vanguard's S&P500 index ETF ( VOO ) tracks its index, the cap-wei...
by JoMoney
Tue Apr 22, 2014 2:37 am
Forum: Investing - Help with Personal Investments
Topic: what do you suggest for reading?
Replies: 15
Views: 1772

Re: what do you suggest for reading?

Reading is good, and if you're really interested in the ins-and-outs of fund investing - by all means... but getting too wrapped up in the process of investing can give you some wacky ideas that might derail you, or possibly just take a good simple plan and needlessly complicate it. My favorite book...
by JoMoney
Mon Apr 21, 2014 3:29 pm
Forum: Investing - Theory, News & General
Topic: Can we ever expect VG to offer ISV or EMV?
Replies: 18
Views: 2284

Re: Can we ever expect VG to offer ISV or EMV?

Years ago, McDonalds did not offer tomatoes in some of its standard burgers. The story I heard at the time was that if tomatoes were included in the McDonalds burger "asset allocation" as a standard item, then there would simply not be enough tomatoes in the world to allow that. It all makes sense ...
by JoMoney
Sun Apr 20, 2014 4:14 pm
Forum: Investing - Theory, News & General
Topic: Mel's Unloved Mid-Caps Finally Getting Some Respect
Replies: 46
Views: 6831

Re: Mel's Unloved Mid-Caps Finally Getting Some Respect

I don't mean to hate on the mid-caps, it was a great call, and if "quality" is indeed a "factor" along with size, then mid-caps would seem to be a sweet-spot between small and quality... but I still have a bit of a problem getting overly excited about mid-caps or small-caps going forward. A lot of t...
by JoMoney
Sun Apr 20, 2014 5:26 am
Forum: Investing - Theory, News & General
Topic: Book for 20 Year Old Beginner
Replies: 16
Views: 1970

Re: Book for 20 Year Old Beginner

For all ages, The Gotrocks Parable by Warren Buffet, as presented in " The Little Book of Common Sense Investing : The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C. Bogle " but also available on his website: http://johncbogle.com/wordpress/wp-content/uploads/2007/03/chapte...
by JoMoney
Sat Apr 19, 2014 9:56 pm
Forum: Investing - Theory, News & General
Topic: NYT: Re-education of a Brash Young Stock Picker
Replies: 23
Views: 4489

Re: NYT: Re-education of a Brash Young Stock Picker

...over the past 10 years generating about 35% per year versus a market return of 7% per year holding primarily 8 to 10 stocks per year... This sort of focus plays a big role in "beating the market", the more "diversified" the portfolio the more likely your results will mimic market returns (with t...
by JoMoney
Sat Apr 19, 2014 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: payWave cards
Replies: 15
Views: 1435

Re: payWave cards

Also, I will not use a debit card linked to my checking account for POS/Internet purchases I do not use a debit card either. I will not activate it if they send me one. If I have a choice, I decline it. I have one, I just won't use it. Most banks don't offer the choice of an ATM only card, but some...
by JoMoney
Sat Apr 19, 2014 9:19 pm
Forum: Investing - Theory, News & General
Topic: NYT: Re-education of a Brash Young Stock Picker
Replies: 23
Views: 4489

Re: NYT: Re-education of a Brash Young Stock Picker

...What you can do, though, is hold a broadly diversified portfolio with low fees and then add a good idea every few years if it comes along. Holding index funds lets the active manager focus on his best ideas and removes the need to pick lots of stocks just to fill out a portfolio. If no ideas com...
by JoMoney
Sat Apr 19, 2014 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: payWave cards
Replies: 15
Views: 1435

Re: payWave cards

<puts on tin-foil hat wallet > "Just because i'm paranoid, doesn't mean they aren't out to get me..." I don't like the payWave and other RFID type payment systems or ID's. Way too easy for people I don't want to have that information to collect it. Also, I will not use a debit card linked to my chec...
by JoMoney
Sat Apr 19, 2014 7:50 pm
Forum: Investing - Theory, News & General
Topic: Interpreting Shiller's data
Replies: 4
Views: 1098

Re: Interpreting Shiller's data

I like to play with the Shiller data as well. I can't say for certain how the data in his spreadsheets monthly prices & dividends are determined (my guess is the average daily close price for the month). When making various calculations playing with the data, I have found the differences to be rough...
by JoMoney
Fri Apr 18, 2014 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: Oh No! My Tilt has untilted!
Replies: 15
Views: 2929

Re: Oh No! My Tilt has untilted!

...Having taken stands on such things as value and small cap tilting, dividend investing, momentum investing, individual stocks, etc., I have pointed out the virtues and pitfalls of these approaches. It probably makes me sound wishy-washy. That is one reason I chose the Charlie Brown avatar. And I ...
by JoMoney
Fri Apr 18, 2014 8:13 pm
Forum: Personal Consumer Issues
Topic: Amazon.com prices change quickly
Replies: 59
Views: 10132

Re: Amazon.com prices change quickly

Use camelcamelcamel.com to track amazon prices to spot trends. Thank you for sharing that! But of course, I wonder about how useful it is to try and time the market... and on the other hand, I have noticed an anomaly I call the " November Effect " where retail prices seem to systematicly reduce aro...
by JoMoney
Fri Apr 18, 2014 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: Which: Dividend Growth or High Yield Dividend?
Replies: 13
Views: 2992

Re: Which: Dividend Growth or High Yield Dividend?

There has been some talk about "Quality" being a factor, but it's highly subjective and open to different interpretations. There have been a handful of articles and people suggesting that the "Quality" of stocks in Vanguard's Dividend Appreciation Index fund fit into this category. Here's a recent a...
by JoMoney
Fri Apr 18, 2014 4:37 pm
Forum: Investing - Theory, News & General
Topic: Value & Growth - 20 Years In Style
Replies: 14
Views: 1820

Re: Value & Growth - 20 Years In Style

...Vanguard growth and Vanguard value are both large cap funds. The total market fund is an all-cap fund. So as compared to the total market, Vanguard growth and Vanguard value will suffer from "large cap drag" during periods of strong performance for smaller stocks. The last decade was one such pe...
by JoMoney
Fri Apr 18, 2014 8:18 am
Forum: Investing - Theory, News & General
Topic: Value & Growth - 20 Years In Style
Replies: 14
Views: 1820

Value & Growth - 20 Years In Style

So I was playing with some numbers today, and came across something I thought might be worthy of sharing. I was over at the Morningstar website, looking at the returns from Vanguard's "Value Index" vs. "Growth Index" vs. "Total Stock Market" over the past few years. It's nice to see the growth of a ...