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Contest To Be Measured Each Quarter

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Hi Scotty,

I agree with you about trying to optimized the market. I have long since given up being concerned about alphas, betas, r-squared, P E ratios, and whatever. All of that is like the Middle Ages when they were arguing about how many angels could dance on the head of a pin according to Hume. I now believe what is necessary is for a portfolio to be globally diversified in stocks and bonds, to be low cost, and arranged according to the person's ability, need, and willingness to take risk. That is no easy task I have found out. It took me a while to understand myself before I arrived at a portfolio that works for me. Best Wishes for the New Year.

 

Joe

 

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It took me a while to understand myself before I arrived at a portfolio that works for me.

 

Joe,

 

This is the rub, isn't it? Once we pretty much figure things out, so much time has passed. I sure wish I knew thirty years ago what I know now!

 

This is one of the reasons I like this forum. I'm hoping that the younger folks, especially, will be able to learn this stuff and avoid the mistakes that we made.

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Hi AP,

You are so right. One has to make mistakes to learn and I am happy I made the mistakes because the mistakes are still not as bad as the ones that an agent would have done on my behalf anyway.

 

I will be sixty this year and its way too late to use what I know now. I have turned from an extreemly risky investor to a mainly a saver with 2/3 of my portfolio in MM earning 5.1% and the rest diversified. I am happy that it is beating inflation, using very low fee companies (TIAA CREF and Vanguard). Inflation has averaged about 4.1% for the last 50 years. Some would say that I have resigned, and I respond, yep guilty as charged. At my age, the risk of earning more, which means about 7-8% in equities (maybe) because of my limited time horizen is just not worth the 5.1% that I am earning now. Very soon I will be in the distribution stage.

 

Happy new year,

Steve

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