Lessons for Building a Winning Portfolio 5 ppt

... companies arecalled “growth stocks,” and those ofbad companies arecalled“value stocks.” Let’s considerfor a moment, Wal-Martand Kmart. The formeris finan- cially healthyand universallyadmired, ... withlegendary management, a steadily growing stream of earnings, and a hugepileof cash on hand for emergencies. The latterisasick puppy, having recently declaredbankruptcy due to marginal fi...

Ngày tải lên: 20/06/2014, 20:20

... gravitational equation from a falling apple and Darwin’s extrapolating the theory of evolution from observ- ing gardeners and farmers select for favorable plant characteristics are two spectacular ... should have a firm asset allocation pol- icy in place. What separates the professional from the amateur are two things: First, the knowledge that brutal bear markets are a fact of life a...

Ngày tải lên: 20/06/2014, 20:20

... case of companies that are buying back their shares. A company that has grown its earnings by 5% per year and annually buys back 5% of its outstanding shares will appreciate by 10% per year, in the ... Glory 37 Table 1-2. Value versus Growth Abroad, 19 75 96 Country Value StocksGrowth Stocks Value Advantage Japan14 .55 % 7 .55 % 7.00% Britain 17.87% 13. 25% 4.62% France 17.10% 9.46% 7.64%...

Ngày tải lên: 21/06/2014, 02:20

... riskier than large stocks. Small companies tend to be insubstantial and fragile. More importantly, they are thinly traded—relatively few shares change hands during an average day, and in a general downturn, ... can swallow. So what’s a reasonable foreign allocation? Certainly less than 50 % of your stock pool. For starters, foreign stocks are more volatile, in gen- eral, than domestic...

Ngày tải lên: 21/06/2014, 02:20

... financial chaos of Paris arrived a most extraordinary Scotsman: John Law. After escaping the hangman for killing a man in a 1694 duel, he studied the banking system in Amsterdam and even- tually ... Most American financial authorities realized that this was an awful idea. Unfortunately, Benjamin Strong, the chairman of the Federal Reserve Bank, and Montagu Norman, the Governor of the...

Ngày tải lên: 21/06/2014, 02:20

... above—where we rebalanced a 25/ 25/ 25/ 25 mix of U.S. large and small, foreign and REITs—about 6 .5% of the portfolio was trad- ed each year. In a taxable account, rebalancing results in capital gains, which ... money at market bottoms than at market tops. You can think of value averaging as a combination of DCA and rebal- ancing. (Value averaging works just as well in reverse. If y...

Ngày tải lên: 21/06/2014, 02:20

... 269 • 5% Vanguard Small-Cap Value Index (IRA) •12 .5% Vanguard Tax-Managed International • 5% Vanguard REIT (VA) •12 .5% Treasury Ladder •12 .5% Vanguard Short-Term Corporate Bond •12 .5% Vanguard ... withdraws his cash. Here’s a reason- able stock allocation for Sam: • 20% Vanguard 50 0 Index • 25% Vanguard Value Index • 5% Vanguard Small Cap Index • 15% Vanguard Small Cap Value Inde...

Ngày tải lên: 21/06/2014, 12:20

... financial, 230, 237 California Public Employees Retirement System (CALPERS), 85 Canals, English, as bubble, 141–142, 158 Capital gains, 54 55 , 81, 99, 103, 104 Capital Ideas (Bernstein), 2 25 Capitalization-weighted ... 293–294 performance of, 77–78 Akamai Technologies, 152 Allen, Frederick, 189 Allocation (See Asset allocation) Amazon, 56 Ambrose, Stephen, 131 American Century mutua...

Ngày tải lên: 21/06/2014, 12:20

... decidethat a weekinParis nowis worth ten weeksadecade fromnow,that implies a much high- erDRof 25. 9%. This isthesame as saying that thepresent value of a weekinParis in a decade has cheapened. Again,an ... foremost, because it provides an intuitive way to think about the value of a security. A stock or bond is not an abstract piece of paper that has a randomly fluctuating value...

Ngày tải lên: 20/06/2014, 20:20

... the index. And that’s before taxes. In a taxable account, this strategy would eat you alive with short-term cap- ital gains, which are penalized at your full marginal federal and state rates. One ... was the result of a massive collaborative effort to collect and analyze stock and bond prices. As researchers began to examine the aggregate performance of stocks and bonds, it was only natur...

Ngày tải lên: 20/06/2014, 20:20