Welcome to the Summer of 2025. Since computers make all decisions related to the Schrodinger, the weekend is an appropriate time to update this portfolio. Since the last review no changes were made other than to pick up a few dividends. In … [Read More...]
Retirement Planning Mistake #7
Lack of Portfolio Plan Do you have a portfolio plan and is it written down? If you can lay your hands on a plan, you are a rare investor. What is involved in specifying a Strategic Asset Allocation plan? A portfolio plan will first of all identify … [Read more]
Retirement Planning Mistake #6
It is a mistake to think your portfolio is properly diversified simply because you have chosen stocks or index funds across differing sectors. That’s not enough. Investing across all sectors will not coverall asset classes, but investing across all … [Read more]
Retirement Planning Mistake #5
This celestial object looks like a delicate butterfly. But it is far from serene. What resemble dainty butterfly wings are actually roiling cauldrons of gas heated to nearly 20 000 degrees Celsius. The gas is tearing across space at more than 950 000 … [Read more]
Retirement Planning Mistake #4
Investors lack knowledge about the importance of asset allocation. Investors do not educate themselves as to the importance of asset allocation, and what asset classes tend to perform better than others over the long-run. I need not go … [Read more]
Retirement Planning Mistake #3
This celestial object looks like a delicate butterfly. But it is far from serene. What resemble dainty butterfly wings are actually roiling cauldrons of gas heated to nearly 20 000 degrees Celsius. The gas is tearing across space at more … [Read more]
Retirement Planning Mistake #2
Prospective investors carry too much credit card debt. This mistake is a corollary of Mistake #1. Stay out of credit card (CC) debt. Mistake #2 is not so much an investor mistake, but rather a mistake of bad management as it has nothing to do … [Read more]
Portfolio Construction: The Essential Decisions
William J. Bernstein, in his most recent book, “The Investor’s Manifesto” writes, “Before diving into the most important issue faced by any investor–the asset allocation decision–you will need to understand four things: save as much as you can, make … [Read more]
Retirement Planning Mistake #1
Mistake number one in my book is failure to save or to not follow The Golden Rule of Investing. Open up a spreadsheet and run your own calculations for the following classic comparison. As a nineteen year old you have the foresight and financial … [Read more]