Talk:Slice and dice

text:''In its simplest form, the idea is to garner excess returns by holding a portfolio that: :a) adds to the market portfolio those asset classes that are deemed likely to deliver superior returns; :b) introduces assets having a low correlation with the stock market; and :c) periodically rebalances each asset class to its original weight. suggestion:
 * a) splits the market portfolio among sub-asset classes that are deemed likely to deliver superior returns;
 * b) holds higher weightings of size and value sub-asset classes that have lower correlations with the market; and
 * c) periodically rebalances each sub-asset class to its original weight.'' --Blbarnitz 16:28, 27 October 2010 (UTC)

For the historical record, here are S&D and/or tilted portfolio examples taken from Boglehead author texts. The allocations are for the US stock market (allocations to international stocks and bonds are asset allocation decisions and are not S&D implementations; thus these allocations are not included; if the allocation includes REITS or other sector allocations, we will include them, since these are segments of the US stock market.) It should be noted that in numerous cases  these portfolios are often used as illustrations of the asset allocation process and are not necessarily offered as model portfolios.

The allocation percentages are those for the US stock market allocation (taken as 100%) in a portfolio. Simply multiply the allocations by the desired percentage of US stocks in a given portfolio to find the overall portfolio weighting. Thus, the 5x20 stock allocation in the Swedroe Defensive Portfolio in the 1999 Only Guide text would allocate 10% to each US stock asset class in a 50% US Stock/50% other asset classes portfolio.

Larry Swedroe
See: Larry Swedroe

William Bernstein
See: William Bernstein

2001 - The Intelligent Asset Allocator, pp. 81-82; p.154
See: Intelligent Asset Allocator

Rick Ferri
See: Rick Ferri

2006 - All About Asset Allocation Chapter 12
See: All About Asset Allocation

--Blbarnitz 16:28, 27 October 2010 (UTC)

Added wiki author and book links. --LadyGeek 17:01, 29 October 2010 (UTC)