Lessons for Building a Winning Portfolio 4 pot

... $11,000 Measuring the Beast 45 isabad/value company;without making too fineapoint, it is, in fact, a realdog. More importantly, Wal-Mart, aside frombeing the better company, isalso thesafer company. ... 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; it is...

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 1 14 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...

Ngày tải lên: 20/06/2014, 20:20

... rise dramatically. If you are value averaging into both taxableand sheltered accounts, as In-Between Ida would haveto do, it is likelythat after atimethe taxableand shelteredhalves of theallocation will ... 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 are retire...

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: 21/06/2014, 02:20

... Sheltered International Vanguard Tax-Managed MSCI EAFE Open-end * 0.35% $10,000/NA 3 24 Taxable International Vanguard International NA Open-end none 0. 64% $3,000/$1,000 910Sheltered Value Fidelity Spartan ... is that we haven’t a clue what that portfolio will be. So, the safest course is to own as many asset classes as you can; that way you can be sure of avoiding the catastrophe of ho...

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, ... medical practice. My reply was that these advances—gene therapy, DNA-based diagnostic testing, the flow of new surgical and angiography tools—had brought only marginal improvements o...

Ngày tải lên: 21/06/2014, 12:20

... 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

... 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

... 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 ... 20 Vanguard Large-Cap Value Fund 34 Barra Mid-Cap Growth Index Fund 8 S&P 40 0 Mid-Cap Index (Mid-Cap Blend) 23 Barra Mid-Cap Value Index 24 Vanguard Small-Cap Growth Fund 73 S&P 600...

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 16 94 duel, he studied the banking system in Amsterdam and...

Ngày tải lên: 20/06/2014, 20:20