Posts filed under “Investing”

Better Than All Weather Portfolio . . .

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My Sunday Washington Post Business Section column is out. This morning, we take yet another at Tony Robbin’s All Weather Portfolio.

The print version had the headline Why the all-weather portfolio is a wash-out while online, it was Better Than All Weather Portfolio.

Rather than merely criticize Robbin’s 55% bond, 15% commodity portfolio, I offered up a variation of a classic 60/40:

All Century Portfolio
20 percent total U.S stock market
5 percent U.S. REITs
5 percent U.S. small cap value
15 percent Pacific equities
15 percent European equities
10 percent U.S. TIPs
10 percent U.S. high yield corp bonds
20 percent U.S. total bond market

And to add a little spice to the discussion, I challenge Robbin’s to a $100,000 bet:

I am willing to bet Tony Robbins that my Century portfolio will significantly outperform his all-weather portfolio over the next 20 years. Toward that I end, I propose that each of us puts $100,000 into our own portfolios. Set it with whatever automatic rebalancing you want — then leave it alone. On Jan. 1, 2035, whichever one is worth more is declared the winner. The loser then donates that original $100,000 investment to the charity of the winner’s choice . . .

Seems like easy money to me

 

Source:
Why the all-weather portfolio is a wash-out
Barry Ritholtz
Washington Post, December 7, 2014
http://wapo.st/1wh8SEn

Category: Apprenticed Investor, Asset Allocation, Fixed Income/Interest Rates, Investing, Really, really bad calls

What Worries Investors?

Great graphic from Bloomberg

 

click for complete graphic
inflation deflation

 

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Category: Digital Media, Investing, Sentiment

Batnick: Why it’s important to diversify globally

Category: Asset Allocation, Investing, Video

Congratulations! You just signed a $325 million deal. Now what?

Congratulations! You just signed a $325 million deal. Now what? Barry Ritholtz Washington Post November 23, 2014       Last week, we learned that Giancarlo Stanton signed an enormous contract: a 13-year, $325 million deal with the Miami Marlins. Before the 25-year-old slugger starts to celebrate, there are quite a few things he needs…Read More

Category: Apprenticed Investor, Asset Allocation, Investing, Wages & Income

The Risk That Will Bite You Next Is NOT The One That Bit You Last

Cassandra Does Tokyo is an Investment Banker now relocated to Japan ~~~ The Risk That Will Bite You Next Is NOT The One That Bit You Last Traumatic and painful events burnish their effect upon our brains. This happens profoundly in childhood, as well as in relationships, and most definitely as readers will know,  in…Read More

Category: Investing, Philosophy

How to Win the Loser’s Game (Full Version)

Bored with the family? Here’s how to kill an hour and a half:
 

How to Win the Loser’s Game: Full Version

via Sensible Investing

 

Category: Investing, Video

Last Few Slots Left: NYC Open House (December 8-12)

We just had a trip to Washington D.C. Coming up in the new year will be visits to Seattle, Austin, and San Francisco, But a number of you suggested New York City as our next place for a meet and greet, and so that is what we decided to do. We have scheduled the week…Read More

Category: Asset Allocation, Investing

A $325 Million Deal Still Needs a Plan

>   My Sunday Washington Post Business Section column is out. This morning, we look at Giancarlo Stanton’s enormous a 13-year, $325 million contract with the Miami Marlins. The print version had the full headline A $325 million deal still needs a plan, while the online version was Congratulations! You just signed a $325 million deal. Now what?….Read More

Category: Apprenticed Investor, Asset Allocation, Investing

World’s Total AuM = Record $68.7 Trillion

Boston Consulting Group has a new report out concluding that, “The asset management industry has achieved its strongest year of growth since the onset of the financial crisis.” As always, the consulting firm’s annual report on global asset management is a dry, number-laden and utterly fascinating look at the business of overseeing money. Ignore the…Read More

Category: Asset Allocation, Investing

Tony Robbins is a self-help genius. He has sold millions of books that many people believe helped them realize their full potential. He understands the human psyche. As a motivational speaker, he knows what a person must do to overcome everyday struggles to “self-actualize,” and awaken the giant within. People love his seminars (although I…Read More

Category: Apprenticed Investor, Asset Allocation, Investing, Really, really bad calls