What's in Rick Ferri's portfolio?

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Re: What's in Rick Ferri's portfolio?

Post by Mel Lindauer »

arcticpineapplecorp. wrote: Fri Aug 19, 2022 11:49 am
Riprap wrote: Thu Aug 18, 2022 2:57 pm Anyone care to give a simple summary without having to watch the video?
if you click on the elipse ... next to "save" you get the drop down that says "Show transcript". Click on that and look to the right where you can scroll through the transcript. image below with relevant/highlighted areas:

Image
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Re: What's in Rick Ferri's portfolio?

Post by p_qrs_t »

A couple of decades ago, when I was getting mauled owning hundreds of individual stocks, my much smarter younger brother handed me Rick Ferri's book, All About Asset Allocation. My approach to investing completely changed, and I have been thankful since. Several years ago, I asked Mr. Ferri to review my account to make sure I wasn't completely off base. It was money well spent, and I encourage those who are a bit uncertain about their portfolio and just want a second look to pay Mr. Ferri the small sum he charges to make suggestions for you.

I think the most important component of this video for me is the discrepancy between one partner who wants to make the right financial decisions and the other who could not be bothered. Simplicity, always important, becomes even more so. Mr. Ferri-- I know you said you never have had a widow/er contact you, but in my slide presentation which my SO receives when I die, it says contact Rick Ferri to help make decisions. (It also says if you have retired, to go to Vanguard advisor services).

I will be purchasing Mr. Ferri's book twice again soon, for my son and daughter (I gave away my copy years ago). One is quite interested in investing, the other has no concept of money. My contributions to Mr. Ferri's retirement fund and generational wealth will also help my descendants.
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Re: What's in Rick Ferri's portfolio?

Post by Normchad »

This was an absolutely fantastic listen. I didn’t learn anything new per se, but for some reason, it was just really well done and fascinating listening. Maybe it was Ricks calm demeanor and clear presentation. Fox particular interest to me was the very end, when Rickmentioned that at one point he had bought fake Salavado Dali prints. Just a great reminder to me that one of us are perfect, but if we just keep going, things can turn out just fine.

I highly recommend listening.
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Re: What's in Rick Ferri's portfolio?

Post by gamboolman »

Thanks to Rick for putting it out there honestly.

We consulted with Rick prior to our retirement which was effective 1-Feb-21. It was a very beneficial and useful to us. Do recommend !
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Re: What's in Rick Ferri's portfolio?

Post by StartedFromTheBottom »

Who is Rick Ferri?
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Re: What's in Rick Ferri's portfolio?

Post by Robot Monster »

StartedFromTheBottom wrote: Sat Aug 20, 2022 1:46 pm Who is Rick Ferri?
He's world-famous in Poland!
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Re: What's in Rick Ferri's portfolio?

Post by Random Musings »

StartedFromTheBottom wrote: Sat Aug 20, 2022 1:46 pm Who is Rick Ferri?
Vell, Rick's just zis guy, you know?

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Re: What's in Rick Ferri's portfolio?

Post by cacophony »

Riprap wrote: Thu Aug 18, 2022 2:57 pm Anyone care to give a simple summary without having to watch the video?
Construct a simple (eg. 3 or 4 fund) low cost portfolio that you hold forever. Any additional complexity has drawbacks and serves no real purpose for the investor.
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Re: What's in Rick Ferri's portfolio?

Post by abuss368 »

StartedFromTheBottom wrote: Sat Aug 20, 2022 1:46 pm Who is Rick Ferri?
Rick Ferri is a Boglehead who has invested considerable time to our forum to help grow the investment advice inspired by Jack Bogle!

Best.
Tony
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Re: What's in Rick Ferri's portfolio?

Post by Charles Joseph »

This was insightful and fantastic. Thanks Rick.
Mazel Tov!
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Re: What's in Rick Ferri's portfolio?

Post by Charles Joseph »

StartedFromTheBottom wrote: Sat Aug 20, 2022 1:46 pm Who is Rick Ferri?
You might find the Bogleheads on Investing podcast interesting. Mr. Ferri is the host:

https://bogleheads.podbean.com/

Also, I've enjoyed looking at his Core-4 portfolio's to gain some insights:

https://core-4.com/
Mazel Tov!
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Re: What's in Rick Ferri's portfolio?

Post by Gaston »

Rick Ferri wrote: Fri Aug 19, 2022 3:40 pm I use RZV because it is concentrated SCV. AVUV is also good, and DFAT. I want SCV fund that gives me the most SCV exposure for the buck.
Just curious, do you prefer RZV to VIOV?
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Re: What's in Rick Ferri's portfolio?

Post by Adam Mundorf »

cacophony wrote: Sat Aug 20, 2022 3:06 pm
Riprap wrote: Thu Aug 18, 2022 2:57 pm Anyone care to give a simple summary without having to watch the video?
Construct a simple (eg. 3 or 4 fund) low cost portfolio that you hold forever. Any additional complexity has drawbacks and serves no real purpose for the investor.
Sounds like a Vanguard Target Retirement Fund will fit the bill for most people in tax advantaged accounts.
Simplicity is King
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Re: What's in Rick Ferri's portfolio?

Post by bertilak »

dbr wrote: Fri Aug 19, 2022 8:22 am I don't listen to hour long podcasts. Maybe on a forum could post instead?
Yeah. I went to the link and was disappointed that it was an hour-long video. I prefer to read for 15 minutes to get the same or more actual information, especially when I am not anticipating anything new.

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Re: What's in Rick Ferri's portfolio?

Post by Rick Ferri »

Gaston wrote: Sat Aug 20, 2022 8:54 pm
Rick Ferri wrote: Fri Aug 19, 2022 3:40 pm I use RZV because it is concentrated SCV. AVUV is also good, and DFAT. I want SCV fund that gives me the most SCV exposure for the buck.
Just curious, do you prefer RZV to VIOV?
VIOV is the Vanguard S&P Small Cap 600 Value ETF. This capitalization-weighted index of all S&P 600 value stocks regardless of their value intensity.

RZV is the Invesco S&P SmallCap 600 Pure Value ETF. This index separates S&P 600 value stocks into pure value and those that are less than pure (these are stocks with growth characteristics but more value characteristics, or are non-value and non-growth that are placed in the value index because they have to go someplace). The stocks are then weighted by their value scores. Thus, the index is pure value stocks with the heaviest weighing in companies that have the most value intensity.

My goal with small-value is to get small-value exposure, and NOT beta exposure. Hence, RZV is my preference.

Many people don't have a choice because the only fund offered in their 401k is an S&P Small Cap 600 Value fund or the Vanguard Small Cap Value Index Fund, so that's what to use.

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Re: What's in Rick Ferri's portfolio?

Post by shriram »

Hi Rick,

Thank you so much for sharing your portfolio design with the community and the rationale. This is very educational for new investors like me.

Based on your previous response, you have substantial % of equity allocation to international stock. Do you also hold international small cap value fund? If yes, which one? If not, why not?
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Re: What's in Rick Ferri's portfolio?

Post by Rick Ferri »

I do not own international small-cap value. If small-cap value performs, it will happen globally and won't matter that I have only US small value. The fewer funds the better, I say.

However, if I were to use an international small value fund, it would be Avantis International Small Cap Value ETF (AVDV) or DFA International Small Cap Value ETF (DISV).

Remember, using factors is basically a life-long investment strategy. It's not a trade, and it's not investing in "the market". It is something very different. Don't go down this path if you're not fully committed to staying the course for at least 25 years. It is difficult to succeed if you do it any other way.

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Re: What's in Rick Ferri's portfolio?

Post by Nathan Drake »

Rick Ferri wrote: Sun Aug 21, 2022 3:15 pm I do not own international small-cap value. If small-cap value performs, it will happen globally and won't matter that I have only US small value. The fewer funds the better, I say.

However, if I were to use an international small value fund, it would be Avantis International Small Cap Value ETF (AVDV) or DFA International Small Cap Value ETF (DISV).

Remember, using factors is basically a life-long investment strategy. It's not a trade, and it's not investing in "the market". It is something very different. Don't go down this path if you're not fully committed to staying the course for at least 25 years. It is difficult to succeed if you do it any other way.

Rick Ferri
The claim that there’s no diversification benefit to US vs ExUS SCV isn’t supported by the historical record

US SCV vs exUS SCV shows a nearly dead decade for developed markets compared to robust returns for US SCV in the 90s through early 00s

https://www.portfoliovisualizer.com/bac ... ion2_2=100

There’s no reason to think that the same situation couldn’t happen to the US

Certainly, it’s fine to simplify your portfolio to
avoid headaches and complexity, but I would argue that international small cap value is a much stronger diversifier than REITs, so a 4-5 fund portfolio could provide more diversification if you swap those funds
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Re: What's in Rick Ferri's portfolio?

Post by Rick Ferri »

I was not comparing US SCV to international SCV. I noted when small-cap value outperforms, it does so globally - relative to whatever market it’s in - US or international. When SCV outperforms in the US compared to the total market, it also outperform internationally compared to total international. Thus you’ll get exposure to the FACTORS by just owning a US SCV fund. You don’t NEED an international SCV fund to get factor exposure. If you want MORE factor exposure, then either own more of a US SCV fund or buy a separate international SCV fund. I prefer not to complicate my portfolio more than it needs to be so I stick with US SCV only.
Last edited by Rick Ferri on Sun Aug 21, 2022 8:23 pm, edited 1 time in total.
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Re: What's in Rick Ferri's portfolio?

Post by Ed 2 »

My portfolio consists of four funds, well actually 5 funds . Total Stock Market Index Fund, Total International Index Fund , Vanguard REIT and two municipal funds in taxable account since late 90’s . Tweaking here and there for tax loss harvesting couple of times in 20 years, other than that never touched anything. 20 years average return approximately around 10% . Never rebalanced or anything , sleeping like a baby.
Correction: municipal bond funds I started investing in 2010.
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Re: What's in Rick Ferri's portfolio?

Post by Rick Ferri »

And that works just fine, Ed, because it works for YOU!

Philosophy is universal
Strategy is personal.
Discipline in mandatory.

If you want to know what I mean by this, watch this video:https://youtu.be/wyxIb9BI7_o
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Re: What's in Rick Ferri's portfolio?

Post by Ed 2 »

Rick Ferri wrote: Sun Aug 21, 2022 8:25 pm And that works just fine, Ed, because it works for YOU!

Philosophy is universal
Strategy is personal.
Discipline in mandatory.

If you want to know what I mean by this, watch this video:https://youtu.be/wyxIb9BI7_o
Thank you. I actually am watching every YouTube video with you as soon as I can find. Was your long time follower. Today I was watching video with Belgium FI group. That video I watched already. Thank you for big contributions in this forum!
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Re: What's in Rick Ferri's portfolio?

Post by abuss368 »

Rick Ferri wrote: Sun Aug 21, 2022 8:25 pm And that works just fine, Ed, because it works for YOU!

Philosophy is universal
Strategy is personal.
Discipline in mandatory.

If you want to know what I mean by this, watch this video:https://youtu.be/wyxIb9BI7_o
Hi Rick -

Watching your video now. If I may ask, what did you pilot sir? Harriers (not sure if they were on carriers) or F-18 Hornet?

My father served on the first supercarrier (2 decks): USS Forrestal.

Best.
Tony
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Re: What's in Rick Ferri's portfolio?

Post by Rick Ferri »

Hi Tony,

I few A-4 Skyhawks and A-6 Intruders.

Rick
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Re: What's in Rick Ferri's portfolio?

Post by Nathan Drake »

Rick Ferri wrote: Sun Aug 21, 2022 8:14 pm I was not comparing US SCV to international SCV. I noted when small-cap value outperforms, it does so globally - relative to whatever market it’s in - US or international. When SCV outperforms in the US compared to the total market, it also outperform internationally compared to total international. Thus you’ll get exposure to the FACTORS by just owning a US SCV fund. You don’t NEED an international SCV fund to get factor exposure. If you want MORE factor exposure, then either own more of a US SCV fund or buy a separate international SCV fund. I prefer not to complicate my portfolio more than it needs to be so I stick with US SCV only.
During the period shown previously, US SCV outperformed US TSM:

https://www.portfoliovisualizer.com/bac ... ion2_2=100

However, International SCV underperformed the Total International market: DM SCV vs DM TSM:

https://www.portfoliovisualizer.com/bac ... ion2_2=100

Just like geographically there may be correlations but low covariance (i.e., US TSM outperforms exUS TSM), factors are also regionally dependent. So I don't think we can claim that if Value outperforms in the US, then Value also outperforms Internationally and therefore there's no added diversification benefit.

Now, do you NEED it? Well, that is a matter of taste as these things always are. But I think if you're an investor that already agrees with factor based investing (and can stick with it), you are better served substituting REITs with an International SCV fund instead.

https://alphaarchitect.com/2020/02/the- ... nst-reits/
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Re: What's in Rick Ferri's portfolio?

Post by nedsaid »

Rick Ferri wrote: Sun Aug 21, 2022 10:48 am
Gaston wrote: Sat Aug 20, 2022 8:54 pm
Rick Ferri wrote: Fri Aug 19, 2022 3:40 pm I use RZV because it is concentrated SCV. AVUV is also good, and DFAT. I want SCV fund that gives me the most SCV exposure for the buck.
Just curious, do you prefer RZV to VIOV?
VIOV is the Vanguard S&P Small Cap 600 Value ETF. This capitalization-weighted index of all S&P 600 value stocks regardless of their value intensity.

RZV is the Invesco S&P SmallCap 600 Pure Value ETF. This index separates S&P 600 value stocks into pure value and those that are less than pure (these are stocks with growth characteristics but more value characteristics, or are non-value and non-growth that are placed in the value index because they have to go someplace). The stocks are then weighted by their value scores. Thus, the index is pure value stocks with the heaviest weighing in companies that have the most value intensity.

My goal with small-value is to get small-value exposure, and NOT beta exposure. Hence, RZV is my preference.

Many people don't have a choice because the only fund offered in their 401k is an S&P Small Cap 600 Value fund or the Vanguard Small Cap Value Index Fund, so that's what to use.

Rick Ferri
Good to hear Rick that you are still maintaining your Small Value tilt and haven't given up on it. I know I have stuck by my Small Value investments which include the Vanguard Small Cap Value Index ETF, the iShares S&P 600 Small Cap Value ETF, and Wisdom Tree International Small Cap Dividend ETF. So I have kept the faith.
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Re: What's in Rick Ferri's portfolio?

Post by garlandwhizzer »

In the question of US REIT versus INTL SCV for the portfolio, there are two separate issues--increased long term returns and increased diversification benefits compared for example to US TSM. When portfolio diversification is carried too far, it may reduce long term returns. You can err with too much or with too little.

It is instructive to do a portfolio visualizer analysis of US REITS versus INTL SCV as measured by DISVX over the longest period possible 1996 - July 2022..

https://www.portfoliovisualizer.com/bac ... ion2_2=100

As is apparent VGSIX massively outperformed but it did so with a greater maximal drawdown and higher volatility. Still REIT had a higher Sharpe ratio. REIT's greater drawdown and higher volatility was due to 2007 - 2009, the greatest collapse in real estate values since the Great Depression. That collapse was due to excessively loose lending standards (0 down, no verification of income, no responsible adults in banks or Wall Street). Those conditions eithe no longer exist or else are much diminished. In my view currently both stocks and real estate are richly valued at present but one not significantly more than the other.

Perhaps INTL SCV was a better diversifier during that time span but at what cost? Why would Rick Ferri choose REIT over INTL SCV? Perhaps for its massively higher returns over the last 26 years. Perhaps because for 1yr, 3yr, 5yr, 10yr, 20 yr, and 32 years in fact US assets of all types have massively outperformed comparable INTL assets. Investors have been hearing a constant chorus that INTL was destined to outperform US based on more attractive valuations from "experts" for 20 years, but that reversal happened only in a few spurts and soon reversed back to US dominance. At some point, investors may get tired of fighting the tape, underperforming, paying a high price for huge levels of theoretical INTL diversification that doesn't put money in their pockets. Extreme levels of diversification have added portfolio complexity, increased cost, and likely reduced long term returns. I say this as someone who has held lots of INTL for a long time and suffered for it.

One final point, Rick Ferri is an accomplished, knowledgeable, experienced investor whose insights have helped many of us on this Forum. If he chooses to structures his portfolio a certain way, it is reasonable to assume that he has a very good strategic reason for it. If we see it differently it's because we're coming from a different place with a different point of view, not because we have some special insight that Rick lacks. Rick also is very honest and not given to self-aggrandizement and greed like many financial professionals. I personally think it's absurd for Forum members to point out what they consider to be cognitive errors in Rick's portfolio construction. It seems to me a bit like a child with crayons lecturing Van Gogh on how to paint.

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Re: What's in Rick Ferri's portfolio?

Post by shriram »

Hi Rick,

Thank you for your detailed response. It was super helpful. One follow up question regarding SCV,

In the video you mentioned that you hold some of Vanguard SmallCap value fund since it is available in your 401k plan. But you also mentioned that you prefer RZV due to strong exposure to value factor.

Now the question is what criteria did you use to contribute to Vanguard SmallCap fund even though it does not provide strong factor tilt? Will you stick with this decision if you start investing from today?

The reason I ask is that I also find myself in similar situation. Specifically Vanguard SmallCap fund is available in the employer 401k plan, though I am not using it currently. Instead I use Vanguard target date fund in Roth 401k account and buy AVUV in the taxable brokerage account.
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Re: What's in Rick Ferri's portfolio?

Post by Nathan Drake »

garlandwhizzer wrote: Sun Aug 21, 2022 10:25 pm In the question of US REIT versus INTL SCV for the portfolio, there are two separate issues--increased long term returns and increased diversification benefits compared for example to US TSM. When portfolio diversification is carried too far, it may reduce long term returns. You can err with too much or with too little.

It is instructive to do a portfolio visualizer analysis of US REITS versus INTL SCV as measured by DISVX over the longest period possible 1996 - July 2022..

https://www.portfoliovisualizer.com/bac ... ion2_2=100

As is apparent VGSIX massively outperformed but it did so with a greater maximal drawdown and higher volatility. Still REIT had a higher Sharpe ratio. REIT's greater drawdown and higher volatility was due to 2007 - 2009, the greatest collapse in real estate values since the Great Depression. That collapse was due to excessively loose lending standards (0 down, no verification of income, no responsible adults in banks or Wall Street). Those conditions eithe no longer exist or else are much diminished. In my view currently both stocks and real estate are richly valued at present but one not significantly more than the other.

Perhaps INTL SCV was a better diversifier during that time span but at what cost? Why would Rick Ferri choose REIT over INTL SCV? Perhaps for its massively higher returns over the last 26 years. Perhaps because for 1yr, 3yr, 5yr, 10yr, 20 yr, and 32 years in fact US assets of all types have massively outperformed comparable INTL assets. Investors have been hearing a constant chorus that INTL was destined to outperform US based on more attractive valuations from "experts" for 20 years, but that reversal happened only in a few spurts and soon reversed back to US dominance. At some point, investors may get tired of fighting the tape, underperforming, paying a high price for huge levels of theoretical INTL diversification that doesn't put money in their pockets. Extreme levels of diversification have added portfolio complexity, increased cost, and likely reduced long term returns. I say this as someone who has held lots of INTL for a long time and suffered for it.

One final point, Rick Ferri is an accomplished, knowledgeable, experienced investor whose insights have helped many of us on this Forum. If he chooses to structures his portfolio a certain way, it is reasonable to assume that he has a very good strategic reason for it. If we see it differently it's because we're coming from a different place with a different point of view, not because we have some special insight that Rick lacks. Rick also is very honest and not given to self-aggrandizement and greed like many financial professionals. I personally think it's absurd for Forum members to point out what they consider to be cognitive errors in Rick's portfolio construction. It seems to me a bit like a child with crayons lecturing Van Gogh on how to paint.

Garland Whizzer
It's more instructive to use Portfolio Visualizer to do a comparison between US SCV and REITs:

https://www.portfoliovisualizer.com/bac ... ion3_3=100

As you can see, US SCV has performed very similarly to a REIT fund throughout this period. Why do you need REITs when you have a more broadly diversified SCV fund?

That's why I suggested substituting it with something that has less covariance, which is what International Small Cap Value (or, even moreso, Emerging Markets Value) was suggested.

Of course, pushing the start date back a few years paints a much different picture for returns. Though, I was *not* claiming it outperformed a backtest that was favorable to US markets, as we know the next 30 years is not knowable in advance and we cannot invest for the past, although we can use the very long term to drive investment decisions.

Why can't I simply have a disagreement without being labeled as someone trying to illustrate "cognitive errors" which wasn't what I was doing at all. I respect Rick and his advice, but humbly disagree. If you don't want to take my words as an anoymous forum poster and would rather defer to authority figures, then you can simply read arguments by Wes Gray, Larry Swedroe, Cliff Assness, Rob Arnott, etc. etc.....not everyone is going to agree, and that's perfectly okay. Rick has put forth a reasonable portfolio and we are splitting hairs over minor optimizations, but ones that are still probably worth highlighting and debating on for those that care about this sort of thing.
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Re: What's in Rick Ferri's portfolio?

Post by Ham And Egger »

Thank You Rick,

These videos are fantastic. The message is simple and very easy to understand. I am brand new to Bogleheads and have just begun building my three fund portfolio with money I'm currently making, 46 years old still working like crazy.

I wish I had an advisor like you when I first started investing 14 years ago. I'm currently with a RIA advisor that charges .75% annually and they are not doing a good job. On top of that I don't even like communications with them. I have already contacted Vanguard PAS services and got a second opinion and am just procrastinating make the leap to Vanguard which charges .33%. I have just over 900k with the RIA in 30 different stocks, handful of mutual funds, and these horrible individual bonds that are linked to underlying individual stocks. If the stocks go below a certain level then the bonds don't pay par value. When I first understood what was happening I felt like I had been robbed. My advisor try to tell me that it was still good.. I called the next day and told them to stop my automatic monthly additions to their company. I would not give them a penny of new money and would not recommend them to anyone, I guess I need to be leaving soon.

Thanks Again!
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Re: What's in Rick Ferri's portfolio?

Post by burritoLover »

garlandwhizzer wrote: Sun Aug 21, 2022 10:25 pm Extreme levels of diversification have added portfolio complexity, increased cost, and likely reduced long term returns. I say this as someone who has held lots of INTL for a long time and suffered for it.
That's the performance chaser's mindset. Add something for diversification purposes which underperforms other assets in the portfolio. Start rationalizing why you no longer need that diversifying asset - costs, simplicity, whatever. Think because something underperforms for 30 years, it is a permanent feature despite history telling us otherwise.
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Re: What's in Rick Ferri's portfolio?

Post by Rick Ferri »

We've again spent too much time talking about the icing on the cake rather than the cake. Whether you own US SCV or International SCV or REITS or all or none is not important. What is important is your allocation to equity and fixed income. That makes up 90% of the cake. Everything else is flavoring. You have your favorite flavor and I have mine. There is no "right" answer to which is the best, at least not one that we will know for 25 years.

Successful investing is:

Philosophy (use low-cost funds, don't market time, be tax efficient, etc).
Strategy (how YOU decide to do it, including the flavor of your icing).
Discipline (stay the course, no matter what).

Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.
Gaston
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Re: What's in Rick Ferri's portfolio?

Post by Gaston »

Rick Ferri wrote: Mon Aug 22, 2022 10:37 am We've again spent too much time talking about the icing on the cake rather than the cake.
You are correct. But it’s more fun to eat (ie, talk about) the icing. :happy
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CyclingDuo
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Re: What's in Rick Ferri's portfolio?

Post by CyclingDuo »

Rick Ferri wrote: Thu Aug 18, 2022 12:10 pm Want to know how I personally invest?

What's in Rick Ferri's portfolio?

Enjoy!

RIck Ferri
Listened to it today during our 32 mile bike ride. Good stuff!!

CyclingDuo
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StevieG72
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Re: What's in Rick Ferri's portfolio?

Post by StevieG72 »

Great podcast, thanks for posting.
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Re: What's in Rick Ferri's portfolio?

Post by dwickenh »

Thanks for another great podcast!!!

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Re: What's in Rick Ferri's portfolio?

Post by burritoLover »

The small-cap value as a substitute for private equity was interesting but why would you want to represent private equity in your portfolio?
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Re: What's in Rick Ferri's portfolio?

Post by Rick Ferri »

burritoLover wrote: Tue Aug 23, 2022 7:51 am The small-cap value as a substitute for private equity was interesting but why would you want to represent private equity in your portfolio?

Because I’m following a Total Economy Portfolio.
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Re: What's in Rick Ferri's portfolio?

Post by pmardo »

Rick, I am curious what percent of your portfolio is in SCV? Thanks!
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Re: What's in Rick Ferri's portfolio?

Post by Rick Ferri »

pmardo wrote: Tue Aug 23, 2022 10:11 am Rick, I am curious what percent of your portfolio is in SCV? Thanks!
About 25% of my total stock allocation, including REITs.
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Re: What's in Rick Ferri's portfolio?

Post by Nathan Drake »

burritoLover wrote: Tue Aug 23, 2022 7:51 am The small-cap value as a substitute for private equity was interesting but why would you want to represent private equity in your portfolio?
What’s interesting too is that while SCV mimics similar characteristics of PE, it hasn’t seen the same rise in valuations

From what I understand, PE is richly valued right now as money has chased this asset class.

So on this basis alone, while the companies you invest in may be similar, their returns may differ quite a bit
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Re: What's in Rick Ferri's portfolio?

Post by Taylor Larimore »

Bogleheads:

Rick Ferri is a former Marine Corps fighter pilot. He flew (I think in his own plane) into Miami to help celebrate my 90th birthday.

Rick donated his royalties from his The ETF Book to the "Wounded Warriors" which is where I got the idea to donate my own royalties from The Bogleheads Guide to The Three Fund Portfolio to the "The John Bogle Center for Financial Literacy."

Best wishes.
Taylor
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Re: What's in Rick Ferri's portfolio?

Post by burritoLover »

Nathan Drake wrote: Tue Aug 23, 2022 10:40 am
burritoLover wrote: Tue Aug 23, 2022 7:51 am The small-cap value as a substitute for private equity was interesting but why would you want to represent private equity in your portfolio?
What’s interesting too is that while SCV mimics similar characteristics of PE, it hasn’t seen the same rise in valuations

From what I understand, PE is richly valued right now as money has chased this asset class.

So on this basis alone, while the companies you invest in may be similar, their returns may differ quite a bit
Interesting point. PE has seen quite the in-flow of money post-covid - not sure where it sits now after the YTD losses in the more speculative stuff.
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Re: What's in Rick Ferri's portfolio?

Post by abuss368 »

Rick Ferri wrote: Mon Aug 22, 2022 10:37 am We've again spent too much time talking about the icing on the cake rather than the cake. Whether you own US SCV or International SCV or REITS or all or none is not important. What is important is your allocation to equity and fixed income. That makes up 90% of the cake. Everything else is flavoring. You have your favorite flavor and I have mine. There is no "right" answer to which is the best, at least not one that we will know for 25 years.

Successful investing is:

Philosophy (use low-cost funds, don't market time, be tax efficient, etc).
Strategy (how YOU decide to do it, including the flavor of your icing).
Discipline (stay the course, no matter what).

Rick Ferri
Hi Rick -

This post speaks to me and makes so much sense! When we step back and look at our strategies and decision from a holistic and macro level we become much better investors.

Thank you for providing your thoughts!

Best.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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Re: What's in Rick Ferri's portfolio?

Post by abuss368 »

Taylor Larimore wrote: Tue Aug 23, 2022 10:49 am Bogleheads:

Rick Ferri is a former Marine Corps fighter pilot. He flew (I think in his own plane) into Miami to help celebrate my 90th birthday.

Rick donated his royalties from his The ETF Book to the "Wounded Warriors" which is where I got the idea to donate my own royalties from The Bogleheads Guide to The Three Fund Portfolio to the "The John Bogle Center for Financial Literacy."

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “Success in short can be measured, not in what we attain for ourselves, but in what we contribute to society.”
Hi Taylor -

Wow! It is awesome to picture Rick flying in a fighter jet armed and ready to fire!

Thank you both for serving our great nation and keeping us safe.

Best.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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Re: What's in Rick Ferri's portfolio?

Post by abuss368 »

Rick Ferri wrote: Thu Aug 18, 2022 12:10 pm Want to know how I personally invest?

What's in Rick Ferri's portfolio?

Enjoy!

RIck Ferri
Hi Rick -

Thanks again for sharing and educating all Bogleheads!

I had a follow up question related to your portfolio construction. I thought you were moving in the direction of less holdings and additional simplicity?

To your reference: the philosophy (cake) is the same the strategy (icing) is personal.

Hope you are well.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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Re: What's in Rick Ferri's portfolio?

Post by Walkure »

Random Musings wrote: Fri Aug 19, 2022 3:39 pm
Rick Ferri wrote: Fri Aug 19, 2022 10:46 am
Random Musings wrote: Fri Aug 19, 2022 10:06 am Hopefully, not any MESA, besides what is held in his various funds/ETF's.

RM
:shock:

You don't understand the value here. You're supposed to SHORT my Hedge Fund Contest long picks, and go long my short picks. If you did, you would have made a lot of money over the years.

That's my story, and I'm sticking to it!

Rick Ferri
With a fine track record like that, you should bring some props and a good catchphrase to the upcoming 2022 Bogleheads Conference. This provides you the perfect opportunity to hone your craft in front of your esteemed peers (and a very discerning audience). It's time to spread the word. Why should the investing public have to accept mediocrity with respect to individual stock picks? #Booyahnomore

RM
For the record, I can corroborate Rick Ferri's story with reference to my post at the start of the BH 2022 hedge fund contest on Jan 10th:
viewtopic.php?p=6440889&hilit=irref#p6440889
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Re: What's in Rick Ferri's portfolio?

Post by Random Musings »

Walkure wrote: Thu Sep 22, 2022 2:45 pm
Random Musings wrote: Fri Aug 19, 2022 3:39 pm
Rick Ferri wrote: Fri Aug 19, 2022 10:46 am
Random Musings wrote: Fri Aug 19, 2022 10:06 am Hopefully, not any MESA, besides what is held in his various funds/ETF's.

RM
:shock:

You don't understand the value here. You're supposed to SHORT my Hedge Fund Contest long picks, and go long my short picks. If you did, you would have made a lot of money over the years.

That's my story, and I'm sticking to it!

Rick Ferri
With a fine track record like that, you should bring some props and a good catchphrase to the upcoming 2022 Bogleheads Conference. This provides you the perfect opportunity to hone your craft in front of your esteemed peers (and a very discerning audience). It's time to spread the word. Why should the investing public have to accept mediocrity with respect to individual stock picks? #Booyahnomore

RM
For the record, I can corroborate Rick Ferri's story with reference to my post at the start of the BH 2022 hedge fund contest on Jan 10th:
viewtopic.php?p=6440889&hilit=irref#p6440889
I know his track record in the contest, I was just making light of it. Being a gentlemen, I'm sure Rick does it on purpose.

RMn
I figure the odds be fifty-fifty I just might have something to say. FZ
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Re: What's in Rick Ferri's portfolio?

Post by Rick Ferri »

Investment skill is evident when you can consistently pick winners AND losers. I believe my track stellar record of going long losers in the Hedge Fund contest speaks for itself. :P
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.
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