DIY Personal & Retirement Financial Planning
Do-It-Yourself financial and investment planning Excel spreadsheet software
Industry rules-of-thumb often state that 15 to 30 stocks are enough for a well-diversified portfolio. This can be very misleading. Recent studies point out that industry rules-of-thumb on the number of stocks needed for a well-diversified portfolio are simply not adequate. These rules-of-thumb most often state that 15 to 30 stocks are enough. “The Truth […]
CLICK HERE TO READ THE SKILLED INVESTOR’s OTHER ARTICLES ABOUT THESE “10 FINANCIAL PLANNING STEPS IN THE RIGHT DIRECTION Find Home Financial Planning Software Time in life is the most precious and perishable asset that a person has. It should be spent enjoyably and efficiently. Scientific investment strategies that rely on relatively efficient financial markets […]
CLICK HERE TO READ THE SKILLED INVESTOR’s OTHER ARTICLES ABOUT THESE “10 FINANCIAL PLANNING STEPS IN THE RIGHT DIRECTION.” Diversification is genuinely an investment “free lunch,†and it is a key contributor to improved investment risk management. Discover Home Financial Planning Software Diversification has become an axiom of personal investing, because the specific risks of […]
The table below in this article presents The Skilled Investor’s Fund Authority Score and other information for the Dodge and Cox Stock Fund (DODGX). The diversified investment fund strategy of the Dodge and Cox Stock mutual fund (DODGX) Personal Financial Planning Software According to its website and its prospectus filing on the U.S. Securities and […]
<<– Continued from Part 1 Find Family Financial Planning Software In addition to showing that large numbers of additional stocks are required to achieve measurable improvements in diversification, the Evans and Archer study clarified other requirements for a well-diversified portfolio. The number of stocks selected for a highly diversified portfolio also depends on what one […]
A well-diversified portfolio contains a very large number of individual stocks and/or bonds that are selected without bias toward particular economic segments. A fully diversified portfolio will approximate the global publicly traded securities markets. The question about diversification most frequently asked by individual investors is “how many stocks or bonds do I need to be […]
Actively-managed mutual funds are not created equally. Performance can vary significantly – even when funds pursue similar strategies or “styles.” This article addresses the impact on portfolio diversification of holding more than one actively-managed mutual fund. (For the companion article to this, see: How many mutual funds are needed for a well-diversified portfolio? – a […]
Another kind of investment diversification that individual investors should consider important relates to the failure or corruption of the financial industry intermediaries and fiduciaries that hold individual investors’ securities. This meaning of diversification has nothing to do with scientific investment principles related to optimal portfolio diversification. However, it is still very important. Prudent investment practices […]
From the perspective of holding a well-diversified investment portfolio according to scientific investment principles, the objective of diversification is to minimize or eliminate ‘unsystematic risk’ or those risks that are not related to the price volatility of the overall securities markets. When people speak of investment diversification, they may mean different things. Therefore, clear definitions […]
Use Caution with Classical Investment Books – A Tip from The Skilled Investor Individual investors should exercise caution when applying the tactics of classical investment books to current markets. The more handcrafted, seat-of-the-pants, and individual actor approach to the securities markets in the pre-computer, pre-networking era has given way to different practices. What might have […]
Passive index investment strategies are superior, because they narrow the range of outcomes and lower your investment risk A previous article, “The Solution – ONLY follow financial strategies that are scientific, passive, diversified, savings focused, risk controlled, low cost, and tax efficient,†suggested that individuals are much better off with a well-considered financial viewpoint. A […]
Complete portfolio diversification is always a better idea. On average, the securities markets will not pay you to hold any skewed subset of the overall market. Doing so is just a gamble that may or may not pay off. You should not expect to be paid any more for the added risk and anxiety. Find […]