This blog post is a review for long-time members. New members may not be aware of the different investing models used here at ITA. The following list does not include the portfolios reported on by Hedgehunter.
ITA Wealth Management Portfolios
- Schrodinger Portfolio: I begin with this one as it is the easiest to manage. The Schrodinger is a Robo Advisor portfolio housed at Schwab. Schwab calls these portfolios, Intelligent Portfolios as they are managed by a computer. All one needs to do is save and continue to move available cash into this account. Schwab does all the rest. There is a rather long history to this passive portfolio so check it out by searching for Schrodinger.
- Copernicus Portfolio: The Copernicus is a buy only portfolio where new cash is invested strictly in U.S. Equities. The ETFs of choice are: ESGV, SPY, VTI, and VOO. Any of the four work. When cash is available, purchase as many shares of these ETFs as possible. That is it. The Copernicus is a very easy portfolio to manage. I highly recommend the Copernicus for young investors with a 30 to 40 year retirement saving plan in mind.
- Huygens Portfolio: This portfolio, along with the Curie and Newton, are constructed around Closed-End-Funds (CEFs) where income is the primary goal. I do not report the financial details of the Curie and Newton, although return percentages and risks are reported when I publish the performance results. This happens about once a month. The Huygens portfolio attempts to mirror Steven Bavaria’s approach articulated in his book, The Income Factory. This model is best used with tax deferred accounts.
- Bohr and Bethe Portfolios: These are growth and income portfolios where equities provide the growth and CEFs provide the income. These two portfolio are middle of the road accounts that are a blend between the Copernicus and the Huygens.
- Pauling and McClintock: These two portfolio use the Dual Momentum (DM) model developed and advocated by Gary Antonacci. He has written a book by the same title, but it is rather expensive. The concept behind the DM model can be condensed into a one or two page paper. If you follow the posts of these two portfolios you will quickly learn how to use this investing model. The Kipling spreadsheet is most instructive in managing these two portfolios.
- Einstein and Kepler: These two portfolios are classified as Relative Strength or Relative Momentum portfolios. To manage these two portfolio requires using and understanding the Kipling spreadsheet. A historical review of these two portfolios aid interested readers as to how to use the Kipling.
- Carson, Gauss, Franklin, and Millikan: These four portfolios are built around the most recent Sector BPI investing model. It will take several Buy and Sell cycles to evaluate this model, but early results are promising. The Sector BPI Model is the creation of the author of this blog and as such is a unique approach to portfolio management. Interested readers will find a new article on this approach at this Seeking Alpha site.
Diversification is one of the driving forces behind all the various portfolios and that is why we choose to use ETFs rather than individual stocks. In addition to diversifying across the stock spectrum, we also advocate portfolio diversification as no one investing model works in all market conditions. In this post seven different models are given as examples of how one might go about developing the “family portfolio.” I doubt any one person wishes to use every model, but I highly recommend branching out and using more than one single model. If time is a constraint, which it is for those still working, concentrate on the Copernicus and Schrodinger.
Comments and questions are always welcome. Place them in the comment section provided below.