William Bernstein’s latest e-Book, If You Can: How Millennials Can Get Rich Slowly, is all about regularly investing equal amounts of money using three mutual funds. Those funds are: U.S. Total Stock Market, International Total Stock Market, and U.S. Bond Market. Save 15% of your salary each month, and that is about it. Bernstein’s recommendations […]
The Elements of Investing: Burton G. Malkiel and Charles D. Ellis
The Elements of Investing is a small investment book patterned after the very popular book on writing, The Elements of Style. There are five primary sections to this book and they are as follows. It All Starts With Saving Index Diversify Avoid Blunders Keep It Simple There are many blog posts that focus on numbers […]
The Nasty Mathematics of Volatility
Long-time readers of ITA Wealth Management note we are paying more attention to portfolio risk and the volatility of individual securities than we did when this blog first started. Below is an example of why this is an important concept to consider when managing a portfolio. This basic idea is discussed in Chapter 8 of […]
Beating the Dow With Bonds
Several years ago I wrote a review of Michael O’Higgins book, Beating the Dow With Bonds. O’Higgins made a name for himself with his Dogs of the Dow book. Both systems are filled with errors. The following review came to mind as I read Jim Sloan’s article, “Is The Traditional Asset Allocation Dead?” Here is […]
The Elements of Investing: Part I
Burton G. Malkiel and Charles D. Ellis have written an amazingly simple and short book titled, The Elements of Investing. This compact book hits on all cylinders of investing and the first one is the most important – SAVE. This simply means, follow The Golden Rule of Investing. A Charles Dicken’s character, Wilkins Micawber, came […]
The Elements of Investing: Part II
Chapter two of The Elements of Investing covers index investing. When it comes to investing, nobody knows more than the market. William F. Sharpe put is simply in an article many years ago when he wrote – The Arithmetic of Active Management. I find it humorous that Sharpe did not use the word mathematics in […]