The volatility in the broad stock market has shaken investors’ belief in the true value of portfolio diversification. The problem is that many of the people who believe that diversification no longer works, may not know how to build a truly diversified portfolio. Warren Buffett is widely quoted as saying : “Diversification is protection against ignorance.” I’ll [...]
Archive for the ‘Portfolio Investing 101’ Category
Why Warren Buffett Was Right: “Diversification is Protection Against Ignorance”
Posted in Active Investing, Asset Allocation, Behavioral Finance, Commodities, Corporate Governance, debt, Diversification, Dividends, ETFs, financial ratios, Global Investing, Income Investing, Investors, Leverage, Long-term investing, Market Outlook, Market Timing, Markets, Mutual Funds, Portfolio Investing 101, Rebalancing, Regular Investing, Retirement, Risk, Stock Investing, Uncategorized, Volatility, tagged diversification, ETFs, fear, forecast, market drop, market fears, mornignstar, prediction, recession, REITs, retirement, S&P 500, Target Date Folios, Warren Buffett on August 3, 2011 | 3 Comments »
Are Americans Saving Enough for Retirement?
Posted in Active Investing, Asset Allocation, Behavioral Finance, ETFs, Investors, Leverage, Market Outlook, Market Timing, Markets, Portfolio Investing 101, Retirement, Stock Investing, Uncategorized, Volatility, Wealth, tagged Fidelity, Financial Crisis, retirement, Vanguard on July 18, 2011 | 4 Comments »
Have retirement accounts balances rebounded from the financial crisis? Reports from both Vanguard and Fidelity put the average balance for U.S. 401(k) plans at a record $75,000 (as of March 31, 2011). The first report, released from Fidelity in May, showed that the average 401(k) balance rose to $74,900—up 12% over the last year. This [...]
Why Low Beta Stocks Are Worth a Look
Posted in Active Investing, Asset Allocation, Behavioral Finance, Diversification, Investors, Leverage, Long-term investing, Low Cost Investing, Market Outlook, Market Timing, Mutual Funds, Portfolio Investing 101, Retirement, Risk, Stock Investing, Uncategorized, Volatility on July 12, 2011 | 6 Comments »
Just last month Geoff Considine wrote an article about why investors may want to explore low beta strategies in a highly volatile market. Here at the Portfolioist, we thought we’d re-post the article in reponse to this week’s wild ride on Wall Street. The recent volatility in the stock market has many investors trying to [...]
The Top 5 Things Every Investor Should Know
Posted in Active Investing, Asset Allocation, Behavioral Finance, Financial Advisors, Investors, Leverage, Long-term investing, Low Cost Investing, Market Outlook, Market Timing, Markets, Portfolio Investing 101, Retirement, Risk, Stock Investing, Taxes, Uncategorized, Volatility, Wealth, tagged costs, diversification, Inflation, market timing, mutual funds, retirement, stocks on July 7, 2011 | 4 Comments »
Worried about the wild swings in the stock market? Not sure what’s next for the economy? You can successfully invest in these uncertain times—and you won’t have to chase the next new IPO or buy into the latest advice on CNBC. Here are the top five things every investor should know.
The Wealth(y) Solution
Posted in Behavioral Finance, Portfolio Investing 101, Risk, tagged Behavioral Finance, Eric Goldberg, Loring Ward, Risk, The Wealth Solution on May 26, 2011 | 1 Comment »
When it comes to investing, it turns out that the rich are just like me and you, only with a few more zeros. They too worry about investment losses more than they appreciate gains. They too often let emotion hold sway over their investing decisions. So says Eric Golberg co-author of a new book called [...]
International Investing in Uncertain Times
Posted in ETFs, Financial Advisors, Global Investing, Portfolio Investing 101, tagged Austin Wealth Specialists, Darlene Gilmore, DBA, Emerging Markets, ETFs, EWX, Global Investing, international investing, KO, MCD, Mint, MOO, VWD on April 12, 2011 | Leave a Comment »
Political turmoil in the Middle East and Africa, a natural and nuclear disaster in Japan, rekindling European debt crises: It’s easy to understand why investors may shy away from investing in foreign stocks these days. They may be making a mistake. Reluctant Global Investors “There’s so much fear out there,” says Darleen Gilmore, founder of [...]
How to Measure Your Investment Portfolio — Part Two
Posted in Diversification, Portfolio Investing 101, tagged AAR, Alpha, Average Annual Return, Beta, CAGR, Compound Annual Growth Rate, Compound Annual Return, correlation, diversification, FAIRX, JKI, portfolio measurement, portfolio performance, R-squared, R2, Total Return on April 7, 2011 | 1 Comment »
There are a large number of statistical measures available for looking at a mutual fund, ETF, stock or a combination of these in the total portfolio. So what are the important measures and what do they mean? I dove into this topic yesterday with a discussion of two important measures: Volatility and Beta. Today I’ll [...]
How To Measure Your Investment Portfolio — Part One: Volatility & Beta
Posted in Portfolio Investing 101, Risk, Volatility, tagged Beta, EEM, EWZ, FTE, GLD, Morningstar, TLT, volatility on April 6, 2011 | 4 Comments »
There are a large number of statistical measures available for looking at a mutual fund, ETF, stock or a combination of these in the total portfolio. For an individual investor, what are the important measures and what do they mean? Over the next two days I will highlight the measures I think are critical to [...]
Rick Ferri on Passive Investing, ETFs, 401(k)s and More
Posted in ETFs, Passive Investing, Portfolio Investing 101, tagged BND, Portfolio Solutions, Rick Ferri, VBMFX, VEU, VFWIX, VGSIX, VNQ, VTI, VTSMX on January 20, 2011 | 3 Comments »
Rick Ferri is not sitting on the fence in the active versus passive investing debate. He has both legs firmly planted in the passive camp, as the cover of his new book amply illustrates. Above the title, The Power of Passive Investing, is a picture of a businessman pulling open his jacket to show a [...]
Portfolio Investing 101: Bill Bernstein
Posted in Portfolio Investing 101, tagged Bill Bernstein, bonds, Emerging Markets, ETFs, foreign stocks, mutual funds, portfolio investing, REITs, small company stocks, The Investor's Manifesto, US equities, value stocks on September 15, 2010 | Leave a Comment »
In his new book, The Investor’s Manifesto, William J. Bernstein makes a strong case not just for the idea of portfolio investing, but the fact of it. Any one of us, with a modest amount of effort, can build a good portfolio, Bernstein argues. Then he proves it. Bernstein is not your typical individual investor. [...]
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