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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

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

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

Lost Money In The Stock Market, What Should I Do?

In this Ask The Expert With Larry Swedroe article, the reader (Larry) lost a lot of money in the stock market.  He detailed his plight and complained about his full service brokerage firm.  It’s 2009 and he only have half of what he did a few months ago.  What should he do?  Here’s the question … Read more

When Is The Best Time to Buy Bonds?

Bonds are debt instruments issued by companies or the government that pays a certain amount of interest, and the full principal amount at the maturity date. The interest rate for bonds depends on a variety of factors, such as the current market interest rates, the maturity date, and the creditworthiness of the issuer. In general, … Read more

Should I Invest in the Vanguard GNMA Fund?

Question from Randy: Is there any reason why my complete bond portion of my portfolio cannot be in the Vanguard GNMA fund (VFIIX)? It has a nice yield and is near its lowest price, and its holdings are backed by the full faith and credit of the U.S. government.Thank you very much. Answer From Larry … Read more

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