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Warren Buffett versus Modern Portfolio Theory

In this Ask The Expert With Larry Swedroe article, Zapp challenges the legitimacy of Modern Portfolio Theory citing Warren Buffett as a rule breaker.  So which is it, Modern Portfolio Theory or Warren Buffett? Here’s the question from Zapp: Other than by taking the self-denigrating stance: “I am not an above average investor”, how can … Read more Warren Buffett versus Modern Portfolio Theory

Low Cost Diversification With Vanguard Total World Stock ETF (VT)?

In this Ask The Expert With Larry Swedroe article, the reader, Murali, is wondering if she could use the Vanguard Total World Stock ETF (VT) to simplify and diversify her investment portfolio.  Vanguard is known for its high quality and low cost investment products, and the Total World Stock ETF should provide most of the … Read more Low Cost Diversification With Vanguard Total World Stock ETF (VT)?

What is the Best Portfolio Rebalancing Strategy?

In this Ask The Expert With Larry Swedroe article, the reader (Edward) is wondering what’s the best way to rebalance his investment portfolio and increase his fixed asset allocation.  Due to the stock market crash, he is reluctant to sell his beaten-down stocks to increase his bonds allocation.  Is it better just to allocate new … Read more What is the Best Portfolio Rebalancing Strategy?

TIPS Bonds: How Treasury Inflation-Protected Securities Work

Treasury Inflation-Protected Securities (TIPS) is a type of Treasury securities that provides protection against inflation and real return.  I don’t know if TIPS is the best bond to buy or not — I don’t think that is the right way to think anyway, e.g., it is better to have a good investment policy and asset … Read more TIPS Bonds: How Treasury Inflation-Protected Securities Work

Commodities: How to Invest in Commodities and Why

Commodities: How to Invest in Commodities and Why 7

I was reading Larry Swedroe’s The Only Guide to Alternative Investments You’ll Ever Need the other day, I have been thinking about adding commodities to my portfolio.  No, I am not going to go out and buy a futures contract; however, I have been thinking about adding commodities to my investment portfolio as part of … Read more Commodities: How to Invest in Commodities and Why

Introduction to Morningstar Style Box

Introduction to Morningstar Style Box 14

In doing your investment research, you may have come across a Tic-Tac-Toe-like box similar to the one below. This box is called the Morningstar Style Box. This particular one came from Vanguard 500 Index (VFINX) profile on Yahoo! Finance. What Is a Morningstar Style Box? Morningstar Style Box is a visual tool created by Morningstar, … Read more Introduction to Morningstar Style Box

Deferred vs Immediate Annuity: Understanding the Differences

Deferred vs Immediate Annuity: Understanding the Differences 18

Annuities are insurance products designed to help you invest for retirement and provide supplemental income during your retirement. The most common form of annuity is income annuity where the investor pays the insurance a sum of money in exchange for a series of regular payment for a period of time, up to a lifetime contract. … Read more Deferred vs Immediate Annuity: Understanding the Differences