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

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2answers
146 views

Investing in commodities, pros and cons?

I'm wondering about investment in commodities (through derivatives such as futures for example). What would they offer new in a multi-asset portfolio? Probably some diversification, but what else? ...
3
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3answers
102 views

Fundamentals of creating a diversified portfolio based on numbers?

There are a number of articles and posts across the internet describing how to diversify your portfolio. But, each claim typically focuses on how to allocate your portfolio rather than describing ...
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3answers
143 views

How do I manage my portfolio as stock evaluation criteria evolve?

Background: I'm a very small-time (eg. $100s), inexperienced trader. Currently, I'm buying and holding stocks that bear dividends. When I evaluate stocks, I look at certain criteria; these have a ...
3
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1answer
106 views

Is there any data that shows how diversifying results in better returns than just sticking to an all-stock portfolio?

Assuming that the money invested is not to be touched for decades (so the risk of temporary market downturns is irrelevant in this case), many suggest that you should still diversify your portfolio ...
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2answers
101 views

What is the standard deviation and mean return of oil?

Let's use WTI. I'd like to add oil to my portfolio, and I was wondering how much I should have. I'm in 60-70% index and 40-30% individual value stocks. I want to cut back on my value plays and add ...
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2answers
200 views

How can I compare my portfolio to others' portfolios?

There are a number of free online portfolio trackers that offer various features such as analyzing one's portfolio in terms of risk, making suggestions for individual assets, and so forth. It is ...
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1answer
84 views

Portfolio Diversity : invest $4000 into one account or $1000 into 4 accounts?

I have a simple question : regardless of portfolio diversity and how it could be a more stable source on income, i'd like to know what system will produce more money ? $4000 into one account symbol ...
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0answers
58 views

Correct term for describing how “interesting” a stock is to buy

When I decide what stocks to place in my portfolio I do a series of technical and fundamental analyses and during each one I give stocks different numbers of "points", and I basically go for the ones ...
1
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1answer
128 views

Total gain of portfolio including sold stocks?

I have a self-managed portfolio with a few stocks in it, which I keep at Scottrade and track with a program called StockMarketEye. I've used a few other portfolio trackers as well, and they all seem ...
1
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1answer
147 views

What percent of your portfolio should be in a money market account?

I am wondering how much (if any) of my liquid assets should be in a money market account. It's worth mentioning that I think this varies a lot based on how big your portfolio is. For example, you ...
0
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1answer
106 views

Simple tool for running what-if analysis on a set of ticker symbols?

There are a lot of heavy-duty portfolio analysis tools out there, but what I'm looking for is (I think) much simpler. I simply want to: Enter a ticker symbol (could be mutual fund or ETF), along ...
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0answers
66 views

best way to keep track of your portfolio, total income / loss for both equities, funds and bonds

Is there any recommended web based tool which allows you to keep track of your investment portfolio, be it equities, funds, or bonds? In the case of bonds, and equities which pay a dividend, I would ...
0
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1answer
135 views

Why would a passive investor buy anything other than the market portfolio + risk free assets?

It's frequently said that you should buy a "high-risk" portfolio with lots of stocks when you are young, and then move into "low-risk" portfolio with lots of bonds when you are older, essentially ...
0
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1answer
78 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
votes
3answers
745 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
47 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
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3answers
675 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
113 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
137 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
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2answers
137 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
votes
2answers
297 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 ...
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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
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1answer
113 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
107 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. ...
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1answer
176 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 ...
3
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2answers
212 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
100 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
140 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
740 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
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1answer
409 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
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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
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1answer
357 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 ...
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votes
2answers
197 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
98 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
925 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
1k 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
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4answers
1k 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
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1answer
194 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
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1answer
94 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
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1answer
153 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
283 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
220 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
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1answer
2k 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
1k 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 ...
4
votes
2answers
3k views

How is my 'Personal Investment Performance' on my 401(k) calculated?

My 401(k) shows the following: my starting value at the beginning of the year personal contributions employer contributions investment gains/losses Closing value from Yesterday Total Change ...
7
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5answers
2k 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 ...
3
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1answer
711 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 ...
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2answers
995 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?
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2answers
157 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 ...