Lessons for Building a Winning Portfolio 6 pptx

... financial chaos of Paris arrived a most extraordinary Scotsman: John Law. After escaping the hangman for killing a man in a 169 4 duel, he studied the banking system in Amsterdam and even- tually ... had parliament pass the Bubble Act. This legislation required all new companies to obtain parliamentary charters and forbade existing companies from operating Tops: A History of Manias...

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 you...

Ngày tải lên: 21/06/2014, 02:20

... Vanguard Tax-Managed Growth and Income • 5% Vanguard Value Index (IRA) •7.5% Vanguard Tax-Managed Small-Cap Defining Your Mix 269 • 5% Vanguard Small-Cap Value Index (IRA) •12.5% Vanguard Tax-Managed ... Pillars of Investing Table 14-1. “Taxable Ted’s” Value Averaging Path (for $500,000 Stock Allocation) Total Stock Tax-Managed Tax-Managed Market Index Small Cap International REIT (VA) Ja...

Ngày tải lên: 21/06/2014, 12:20

... 2000. Erb, Claude B., Harvey, Campbell R., and Viskanta, Tadas E., “Political Risk, Economic Risk, and Financial Risk.” Financial Analysts Journal, November/December 19 96. Fama, Eugene F., and French, ... unnecessary capital gains. This methodisabout the best technique available, in myopinion, for establishing a balanced allocation. But it is not perfect. As alreadypointed out, if there...

Ngày tải lên: 21/06/2014, 12:20

... 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 ... by 2 .66 % per year. During the past 31 years, the small-stock advantage in Japan has been 1.78%. Abroad, as in the U.S. small stocks were riskier. Once again, the relationship between ri...

Ngày tải lên: 20/06/2014, 20:20

... the 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, ... observers, and unfortu- nately, this is eventually what happened. Third, and most important, the real beauty of the above formulas is that they can be rearranged to calculate the market’s expect...

Ngày tải lên: 20/06/2014, 20:20

... high-octane Manhattan Fund. Unfortunately for Tsai, just at that point, he was struck with a fatal case of chimpanzee syndrome. The years 1 966 –1 967 were mediocre for Manhattan and in 1 968 , the patient ... “best” managers produce returns that are easily explained by the laws of chance. Are we in Randomovia yet? Almost. If we actually were in Randomovia, we would find that above-aver...

Ngày tải lên: 20/06/2014, 20:20

... value each year as capital gains. Fortunately, there are now “tax-efficient” index funds designed for taxable accounts, which are generally able to avoid capital gains. In 1999, Vanguard created ... unnecessary capital gains and resultant taxes. For the taxable investor, indexing means never having to pay the tax and investment consequences of a bad manager. Why Can’t I Just Buy and Hol...

Ngày tải lên: 20/06/2014, 20:20

... requirements are immaterial. For example, if you havesaved a largeamount forretirementand do not plan to leavealarge estate for 114 The Four Pillars of Investing Table 4-1. 1901–2000, 100-Year Annualized ... 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 gen...

Ngày tải lên: 20/06/2014, 20:20

... the roads and public safety made travel a danger- ous, slow, and extremely uncomfortable endeavor. At a stroke, the railroads made overland travel cheap, safe, rapid, and relatively comfortable. ... financial chaos of Paris arrived a most extraordinary Scotsman: John Law. After escaping the hangman for killing a man in a 169 4 duel, he studied the banking system in Amsterdam and e...

Ngày tải lên: 20/06/2014, 20:20