Questions tagged [portfolio]

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

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10
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4answers
2k 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
329 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
1k 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. So,...
-1
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1answer
421 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 ? ...
5
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2answers
385 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 ...
5
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1answer
308 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
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2answers
225 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 ...
12
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3answers
3k 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
1k 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 ...
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0answers
65 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 ...
2
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2answers
8k 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
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2answers
293 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
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1answer
115 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 ever)...
2
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3answers
4k 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
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2answers
5k 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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5answers
2k 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
303 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 ...
9
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1answer
259 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
316 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
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4answers
390 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
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1answer
634 views

Using the Rule 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 ...
2
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1answer
20k 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 ...
8
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2answers
2k 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
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2answers
8k 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 Personal ...
9
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5answers
3k 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
1k 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 ...
2
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2answers
669 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 ...
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2answers
526 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
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5answers
385 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
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1answer
128 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
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2answers
521 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
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4answers
2k views

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

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
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3answers
811 views

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

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 ...
4
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3answers
3k 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?
13
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1answer
594 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 (VEU)...
4
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2answers
21k 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
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1answer
3k 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 ...
7
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2answers
640 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 ...
1
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1answer
140 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
1k 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 ...
4
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1answer
433 views

Could someone please provide an example of a portfolio similiar to the GFP or Couch potato, but for Australia?

So I've been reading about MPT and came across the GFP and couch potato sites posted in this link, in any-experience-with-the-gone-fishin-portfolio and wanted to know of anything similiar to the GFP ...
8
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3answers
871 views

Where are Bogleheadian World ETFs or Index funds?

The term bogleheadian is a bit ambiguous term but its simplification means low-cost, diversified, tax-efficient -- solutions. The slant is ETFs or index funds. William Bernstein wrote in some of his ...
6
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3answers
185 views

Including the region where you live in your investment portfolio?

Diversification in an investment portfolio is generally recommended. Can my portfolio benefit from avoiding investment in my local economy? When browsing several US sites for investment advice, they ...
3
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1answer
242 views

Are interest bearing checking accounts (rewards checking) covered by FDIC?

I see a lot of banks offering rewards checking accounts (maintain the account in an active status by doing x transactions/month,direct deposit, paper less statements etc, in return you yearn high apy. ...
2
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5answers
1k views

What's the most conservative split of financial assets for my portfolio in today's market?

Mid 30's, looking for what split I should have between Australian shares, International shares, property, cash, interest, bonds, options, etc. or maybe none of the above. What is considered to be a "...
1
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1answer
282 views

Why are “random” deposits bad?

The deposits of private investors often consists of random securities, caused by tips of friends, banks and exchange newspapers. It is said that the ratio of risk and return cannot be optimal like ...
8
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2answers
284 views

Explain the details and benefits of rebalancing a retirement portfolio?

What exactly does rebalancing entail? Does it mean that if I originally had 50% in stocks and 50% in bonds and my stocks do amazingly well that I end up with 75% in stocks and 25% in bonds that I ...
12
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5answers
3k views

Asset allocation software: Application or tool to help me rebalance my investment portfolio? [closed]

I'm looking for an application that can help me rebalance my investment portfolio. I'm not looking for something that will suggest percentages for each asset class. I'm looking for something that, ...
9
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3answers
1k views

Long-term cash-equivalent ETFs for “cash” allocation in a portfolio?

My retirement account goal analyzer advises that I keep 3% in cash. My retirement date is over 30 years from now, so I can tolerate heavy volatility and certainly don't need liquidity. Does it make ...
6
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4answers
2k views

What is a typical investment portfolio made up of?

I understand the idea behind an investment portfolio (investing one's money in diverse ways), but I'm not sure where to begin. I have a 401k with my current employer and a savings account at a bank, ...