Questions relating to the collection of an individual's investments, looked at at a whole.

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0
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1answer
55 views

Markowitz implied returns

In trying to evaluate a portfolio allocation, I want to do a reverse markowitz, that is find the implied returns that would result in the current allocation to be optimal. This results in some of the ...
3
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3answers
212 views

How is the Efficient Frontier drawn?

I know efficient frontier is the collection of expected return on a portfolio and the level of risk(e.g. standard deviation). What I don't understand is that is the efficient frontier really drawn ...
0
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0answers
20 views

How are the sub-periods derrived in TWRR Daily Valuation?

I've been looking at the TWRR Daily Valuation method and I'm trying to understand how to break the total performance period into sub-periods when there are irregular cash flows. As the article ...
3
votes
3answers
232 views

How can I determine if my portfolio's rate of return has been “good”, or not?

I've invested in stocks as a hobby for the last ten years, so I'm no expert on this. But if you have contributed about $7,000 over the past ten years (like putting in $200 here and there) and your ...
5
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4answers
1k views

Senior in College, need advice on my investing plan

I am a rising senior in college and saved up $3,000 dollars from my summer internship. I have done a lot of research online about investment options for my age and I decided that opening a Roth IRA ...
2
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2answers
105 views

Portfolio theory and the business cycle: Determining ideal allocation to stocks?

Historically, there is a level of mean reversion with stock prices. So the expected return of a market portfolio changes with boom and bust periods. Is there a generalization of portfolio theory that ...
4
votes
2answers
125 views

Is there a way to set a stop for a stock before you own it?

Here's the situation: I like to place buy orders when the market is closed. However, I do not like to wake up at 630 (pacific time) to set a stop order to sell the stock. Is it possible on merrill ...
2
votes
2answers
93 views

Calculation for balancing portfolio percentage vs. risk

Disclaimer: I'm a complete novice to investment, so please adjust the style of your answer accordingly. There are some good questions on this site about "what percentage of my portfolio should I keep ...
7
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2answers
242 views

Pros/cons of replicating a “fund of funds” with its component funds in my IRA?

I'm interested in investing in the Vanguard Target Retirement Income Fund in my IRA. That fund is made up of 5 funds: Total Bond Market II Index Fund Investor Shares (very similar to the Total Bond ...
10
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4answers
1k views

Is there data and proof that a diversified portfolio can generate higher returns than the S&P 500 Index?

I wanted to ask a follow up questions to the questions linked below. Why would I want a diversified portfolio, versus throwing my investments into an index fund? I have a personal financial adviser ...
1
vote
1answer
65 views

Reasonable alternatives to using the Treasury rate as the risk free rate, e.g. for CAPM calculation?

For all practical purposes, the risk free interest rate is taken to be the short term Treasury bill interest rate. Let's say this rate is 0.5% per annum. But for an individual investor, if his bank ...
0
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1answer
55 views

How do you determine the risk free rate of an asset?

Well, I am asking this, because I am kinda confused. Here, there seems to be an error. Because they say the risk free asset and they're probably referring to WIG and it should be 0.12 and not 0.08. ...
-1
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1answer
104 views

Confused about google portfolio chart

I added a test trade using google finance, buying 1 share of Google stock : At the end of day here is how the portfolio appears : How the the run percentage so high ? 1367.53% is calculated how ...
2
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1answer
135 views

How Warren Buffett made his money

Is there any authoritative treatise or publication or book or white paper that explores (with all the math included) that how Warren Buffett really made his money? Something that explores the facts ...
4
votes
1answer
62 views

How to treat multiple currencies in global asset allocation?

Say I'm trying to diversify my portfolio along multiple asset classes and countries. Many of those assets are in different currencies. For example, I'm based in the UK and I'm evaluating a 3 asset ...
5
votes
2answers
122 views

Does long term asset growth really converge to that derived from compound interest formula?

Many websites/experts claim that the longer you hold your assets, the likelier your asset's return is closer to that predicted by the compound interest formula. However, some other experts claim ...
6
votes
1answer
432 views

Couch Potato Portfolio for Europeans?

I recently came across the Couch Potato Portfolio concept and was happy to find an investment strategy that made sense to me. Its origin seems to be the Canadian version, and it has been translated ...
1
vote
1answer
303 views

How can a beginner start an investment portfolio in Europe (France)?

I have been lurking, reading information about personal finances for a few months (if not years) now, but I didn't get the chance to start because I don't know where to start. Here is the thing: I am ...
1
vote
0answers
58 views

What's the cost of rebalancing when you buy through a fund supermarket?

I was reading about how to rebalance a funds portfolio and the main drawback seemed to be that you could incurred in more costs than you would if you just do it sporadically. I understand this ...
1
vote
1answer
213 views

How to see a portfolio's overall profit or loss on Yahoo Finance?

On Yahoo Finance, I created a sample portfolio and added a few stocks. Now when I go to the portfolio, it shows me the current price, how much up and down since the previous day, volume, etc. But ...
3
votes
2answers
172 views

What risk of a diversified portfolio can be specifically offset by options?

I have been reading articles on portfolios and options. It seems options are used to hedge portfolios for multiple risk factors. I would like to know why options, and why not futures? What is the ...
3
votes
1answer
94 views

Overall portfolio vs. your investment product's portfolio?

I'm just starting to invest and going with a managed account. I'm sure any investment firm would love to manage all my available money, however I'm not ready to put all my eggs in one basket (if ...
2
votes
3answers
633 views

Computing portfolio return with net inflow/outflow

in his book "The four pillars of investing", the author describes this simple method to compute the rate of return for a portfolio that has a net inflow of cash: Without in- or outflow, the rate of ...
6
votes
2answers
526 views

Investment time horizon: When is it acceptable to withdraw money from investments?

I have received a windfall of 300K dollars. I am 23, have no debt, college educated. I want to have a mini retirement when I am ~40 years old. I plan on managing a diversified portfolio of index ...
1
vote
4answers
764 views

What is an ideal number of stock positions that I should have in my portfolio?

Is there a certain number of stock positions that one should keep in a portfolio? For example what makes more sense ? Option 1: $10,000 spread among 5 solid stocks, if you find new stock then remove ...
4
votes
1answer
150 views

Investment Club - Legal Steps

This is an extension/more detailed question I asked a while ago: Legal documents required for managing an investment portfolio among friends? The main question here is do I need to create an LLC to ...
7
votes
1answer
80 views

Is the ESPP discount profit?

My employer offers an ESPP program through which we can buy stocks with some discount. Assume the discount is D and the market price in the day when the stock is purchased is P. The stock is purchased ...
4
votes
1answer
138 views

How can I track the value of options live in my portfolio

With stocks I can enter price and amount into most applications and they allow me track the total Profit / Loss live. Are there any ways to do this with option positions? I was considering entering ...
2
votes
4answers
267 views

Why should I worry about the variance of the return?

I have this doubt (I hope that this is not a completely silly question). If my growth rate depends on the long period average return, why should I worry about the variance of the return? i.e. over the ...
3
votes
1answer
216 views

Using the Law of 72 to compute residual income?

Often I check an investment strategy's performance by summing the year-to-date realized gains/losses. I take the sum of all closing(or market for unrealized) values CT, subtract the sum of all cost ...
0
votes
1answer
1k views

Is it possible to manage my multiple accounts and my wife's multiple accounts as a single portfolio with TD Ameritrade?

Is it possible to manage my multiple accounts and my wife's multiple accounts as a single portfolio with TD Ameritrade's online tools? I would like to do easy asset allocation across all those ...
7
votes
2answers
951 views

Legal documents required for managing an investment portfolio among friends?

I am considering setting up a personal kind of hedge fund / stock portfolio among friends. I am trying to figure out what kind of a legal agreement I should have them sign for investing with me to ...
7
votes
4answers
1k views

How to convince someone they're too risk averse or conservative with investments?

I have a friend who is very risk-averse, by self admission. By my standards he is too much risk averse for his own good. He says that his personal experience over the last 15-20 years taught him that ...
2
votes
1answer
581 views

Are there any online tools to examine asset allocation and portfolio diversification?

Are there any good online tools to examine asset allocation, portfolio diversification? I would be interested in being able to plug in numbers, run scenarios etc. I could build a worksheet in Excel ...
1
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2answers
754 views

Are there any online stock portfolio sharing tools?

Are there any online stock portfolio sharing sites that one can use to share access to a portfolio among-st multiple people?
2
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1answer
128 views

What is the principle of forming an arbitrage strategy?

I have heard that the arbitrage strategy follows the principle of "short in expensive, and long in cheap" (Or, maybe, it was "short in cheap, and long in expensive."). I wonder how to explain this ...
0
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2answers
367 views

Diversified portfolio return calculation & comparison to return from real estate only?

Here's a sample portfolio. If we assume that he invested $100K in the beginning (2005), is it correct that if he sold his entire portfolio and the end of 2009, he would have received $121,394? ...
11
votes
5answers
171 views

What to sell when your financial needs change, stocks or bonds?

Say I have a portfolio composed of 80% index funds, and 20% bonds. This portfolio was created under the assumption I would have a relatively large income, and wouldn't need to withdraw any funds for a ...
3
votes
1answer
64 views

What's the role of commodities in a IRA portfolio?

People keep talking about percentage of stocks vs bonds to manage risk when building a personal investment portfolio. What's the role that commodities have in managing risk when building an IRA ...
5
votes
2answers
345 views

Official site to follow Warren Buffet's Berkshire Hathaway change in investment holdings?

Recently, from a public web site unofficial source, I found out that Warren Buffet's company Berkshire Hathaway is increasing its stake in Wells Fargo. Is there a web site where I can get official ...
3
votes
4answers
817 views

Online tools for monitoring my portfolio gains/losses in real time?

My request is a simple one... I have about 5 stocks that I own currently and have owned for years now. I want to start trading more actively now but want to make informed decisions on how my stocks ...
1
vote
2answers
555 views

What's the best online tool that can track my entire portfolio including gains/losses?

My broker does a great job of keeping my positions current but has really bad views/reports while other sites do a great job of tracking gains/loss and other reports but they don't keep track of ...
3
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3answers
617 views

Does financing a portfolio on margin affect the variance of a portfolio?

For example, if the portfolio is financed with 50% margin, does it affect the portfolio variance?
11
votes
1answer
131 views

For higher returns, put money in fewer or more ETFs? w/rebalancing in the equation

I'm evaluating my long-term investing strategy. I am somewhat aggressive and want to stick with ETFs. Scenario A 60% Vanguard S&P 500 Index ETF (VOO) 40% Vanguard FTSE All-World Ex-U.S. ETF ...
4
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2answers
6k views

What is the difference between a fund manager and a portfolio manager?

What is the difference between: a fund manager, a portfolio manager and a trader?
5
votes
1answer
847 views

I would like to publicly share the details of my investment portfolio. What websites add value in this regard?

I want to have the ability to share the details of my holdings and have a website track the return over time while making this information 100% public to anyone who may be interested. What websites ...
6
votes
2answers
379 views

Looking for suggestions for relatively safe instruments if another crash were to happen

My current investment strategy involves having 20% as liquid cash, 30% as bonds (aggregate bond fund), and 50% as a mix of domestic and international equity. The stock portion is invested via index ...
9
votes
2answers
5k views

Where can I find open source portfolio management software?

I am looking for open source code that allows me to do something like Morningstar, but with full export facility, not partial like here, and only for low-cost index funds. I don't want to create a ...
1
vote
1answer
104 views

Using stock markets in Europe, how can I buy commodities / resources, to diversify my portfolio?

I am in Europe and I would like to differentiate my portfolio in buying resources, such as oil, sulphuric acid, titanium etc. Of course not in material form, but as stocks. How can I achieve this?
5
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2answers
774 views

Vanguard retirement portfolio suggestions for my 403(b)?

I'm 28 years old and going to start my 403(b) retirement investment. My investment contributions will be 5% by me and 5% by my employer. I'm planning to invest 8% in pretax and 2% in Roth. The ...