As readers of this blog, if you are anything like me, there comes a time when it is important to step back and simplify, or at least review the investing process. In other words – Pull me out of the investing weeds. It is all too easy to be seduced by all the mathematics. Let’s make it a little simpler by breaking the overall arching investment process into two major categories, passive and active investing. If you want to follow the passive approach, pay attention to the Schrodinger, Copernicus, and Pasteur reviews. This is where one sets up a Strategic Asset Allocation plan and then populates the asset classes using ETFs that fit the different classes. If interested in active management using options, track the Hawking. If you are looking for some middle ground between passive and very active, concentrate your attention on all the other portfolios. Recent reviews include the Bohr and Rutherford. Check the Categories over in the right-hand sidebar and select one of the portfolios for further examination.
The Bohr review this morning began with the Dashboard and then the following menu shown below. The only thing I changed was the Maximum Number of Assets to be included in Portfolio. I increased the number from 2 to 4.
Menu Screenshot: The following screenshot comes from the Sample Allocation Sheet 7.1.3 spreadsheet and this is where one sets the initial parameters. To keep the combinations under control, the only variable I change is the number of assets I want to include in the portfolio.
After uploading the most recent data, I rank the securities and check to see which ETFs are top ranked and how many shares are recommended for each security. If possible I buy in round lots of 100. Sometimes this is not possible if the portfolio is small. That is it. So keep it simple when possible.
Three more portfolios will be reviewed this week so follow along and see how simple it really is unless one wishes to take a more complicated investing route.