The Feynman Study: Part 6-1

In Part 6 of the Feynman Portfolio Study we change gears a little and start an analysis of methods for Risk Management.

As regular readers of this Blog may have realized, I consider Risk Management to be probably the most important aspect of Investing – irrespective of the Investment style being employed. Not losing money is at least equally as important as making money – and avoids (most of) the associated mental anguish.

Throughout the next series of Posts covering this important topic I will be applying risk management methods/techniques to the portfolios already analyzed in Parts 2-5 of this Study. In this way, readers will be able to see the impact of applying risk management techniques to familiar portfolios.

This first Post covers the application of a Moving Average Filter (ITARR) to the “Passive” and “Dynamic” Feynman portfolios analyzed in Parts 2 and 3 of the Feynman Study.

Be sure to read my introductory section on the need to have an “Investment Plan” (equivalent to a Corporate Business Plan) prior to getting into the analytical details.

This material is not available for publication elsewhere on the Internet.

The downloadable Word document is available here with associated detailed Appendices, Appendix 5 (“Passive” Feynman) available here and Appendix 6 (“Dynamic Feynman) available here.