Why think small when it comes to portfolio construction? There are a few compelling reasons which I will explain below. Here are a few for starters. It is easy to track and there are fewer trades. With fewer trades, there is less slippage due to the bid-ask price spread. It takes less time to set […]
Constructing A Swensen Portfolio: 17 June 2020
Fifteen years ago David Swensen authored Unconventional Success: A Fundamental Approach to Personal Investment. Swensen is well-known for his outstanding management of the Yale Endowment Fund. On pages 83 and 84 of his book, Swensen lays out the science of portfolio structure. Here is an outline of his arguments. Long-term investment portfolios will exhibit diversification […]
Bare Bones Portfolio: For Beginning Investors
Simplify – simplify. That is the effort with this sample portfolio. The Basic portfolio follows the Occam’s razor principle or to paraphrase – “The simplest solution is most likely the right one”. The following portfolio is also a good one for beginners as it is not complicated and with the Kipling in place, is easy […]
Portfolio Construction: What Goes Into Building a Portfolio
Portfolio construction is second in importance to The Golden Rule of Investing when it comes to building a retirement fund. Holding down expenses is also high on the list. What goes into building a portfolio? In this blog I’ll walk through the history of how the Rutherford came into existence and explain the logical steps […]
Income Oriented Investors: 21 January 2020
Income Oriented Investors It is not unusual for one to run into an investor who is motivated more by income than growth. While one rarely participates in both the growth and dividend worlds, there are some “blend” portfolios that tilt toward income while providing for some growth. Follow the portfolio shown below. There is no […]
iShares Sample Portfolio
Among the first ETFs to come on the market were from iShares. In this sample portfolio or “investment quiver” we see how these early securities are used to construct a portfolio. Both value and growth asset classes are covered for different cap sizes. SPY is included to cover the S&P 500 so there will be […]
Franklin Portfolio: Adjusting Investment Quiver
Several portfolios are not performing as expected. To improve returns I’m in the process of making major adjustments and the Franklin portfolio is in line for a change. The “investment quiver” is undergoing restructure as you see in the first screenshot. This is a small portfolio making it a good “lab rat” for this alteration. […]
Model Portfolio
With zero commissions now available through Schwab and TDAmeritrade, additional flexibility is accessible when it comes to making up the investment quiver. Let’s combine our ideas and put together a set of ETFs that cover the basic asset classes while adding in the key factors of Size, Value, Quality, and Momentum. Below is my first […]
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