The Four Pillars of Investing: Lessons for Building a Winning Portfolio 3 potx

The Four Pillars of Investing: Lessons for Building a Winning Portfolio_2 ppt

The Four Pillars of Investing: Lessons for Building a Winning Portfolio_2 ppt

... statisticians call a “standard deviation” (SD). This can be thought about as the degree of “scatter” of a series of values about the average. For example, the average height of adult males is about ... through the centuries. Bills, on the other hand, were simply pieces of paper of a certain face value, purchased at a discount. For example, the Bank of Eng...
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The Four Pillars of Investing: Lessons for Building a Winning Portfolio_3 potx

The Four Pillars of Investing: Lessons for Building a Winning Portfolio_3 potx

... dividends for each year to the present, then add them all up. But with a few mathematical tricks, this nut is easily cracked. A Stream of Future Dividends, Forever and Ever, Amen To paraphrase the famous ... accurately predicted by the Gordon Equation. As I’ve already said, these are essentially the laws of gravity and planetary motion of the financial markets. But it se...
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The Four Pillars of Investing: Lessons for Building a Winning Portfolio_4 pdf

The Four Pillars of Investing: Lessons for Building a Winning Portfolio_4 pdf

... was the result of a massive collaborative effort to collect and analyze stock and bond prices. As researchers began to examine the aggregate performance of stocks and bonds, it was only natural ... high-octane Manhattan Fund. Unfortunately for Tsai, just at that point, he was struck with a fatal case of chimpanzee syndrome. The years 1966–1967 were mediocre for Manhattan a...
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The Four Pillars of Investing: Lessons for Building a Winning Portfolio_5 docx

The Four Pillars of Investing: Lessons for Building a Winning Portfolio_5 docx

... size of the fund, the size of the company, and the total amount transacted. As a first approximation, assume that it is equal to the spread. The four layers of mutual fund costs: • Expense Ratio • ... your 100 The Four Pillars of Investing This page intentionally left blank made possible the storage and analysis of a mass and quality of stock data that C...
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The Four Pillars of Investing: Lessons for Building a Winning Portfolio_6 pot

The Four Pillars of Investing: Lessons for Building a Winning Portfolio_6 pot

... practices the lack of historical knowledge is the one that causes the most damage. Consider, for example, the principals of Long Term Capital Management, whose ignorance of the vagaries of financial ... time. For this generation, the horses are already out of the barn, and it may be another 30 years the typical Let’s get a bit of nomenclature out of the wa...
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The Four Pillars of Investing: Lessons for Building a Winning Portfolio_7 doc

The Four Pillars of Investing: Lessons for Building a Winning Portfolio_7 doc

... Most American financial authorities realized that this was an awful idea. Unfortunately, Benjamin Strong, the chairman of the Federal Reserve Bank, and Montagu Norman, the Governor of the Bank of ... amounts of capital now available. There was even a fashionable new technology involved: the laws of probability. Fermat and Pascal had recently invented this branch of mat...
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The Four Pillars of Investing: Lessons for Building a Winning Portfolio_8 ppt

The Four Pillars of Investing: Lessons for Building a Winning Portfolio_8 ppt

... than all of them? On top of that, there are tens of thousands of professional investors using the kind of software, hardware, data, technical support, and underlying research that you and I can ... next major error that investors make is the assumption that the immediate past is predictive of the long-term future. Take a look at the data from the table at the begin...
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The Four Pillars of Investing: Lessons for Building a Winning Portfolio_9 pdf

The Four Pillars of Investing: Lessons for Building a Winning Portfolio_9 pdf

... industry and resulted in the passage of the Securities Acts of 1 933 and 1 934 , and the Glass-Steagall Act, which still shape the finan- cial industry today. But for decades before this, Charlie Merrill ... were buoyantthat year.Then,asnow, tech stocks wereall the rageand trad- ing volume was high,atleast bythe standardsof the day. Brokersat other firms, all ofwhomworked on...
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The Four Pillars of Investing: Lessons for Building a Winning Portfolio_10 doc

The Four Pillars of Investing: Lessons for Building a Winning Portfolio_10 doc

... funds carry a sales load of up to 6%, and another 30 % carry a 12b-1 annual fee of up to 1% per year for marketing. The most notorious of these is the American Skandia ASAF Bernstein (no relation!) ... 0.80% expense gap is an insurmountable advantage—even the Almighty himself is incapable of assembling a portfolio of GMNAs capable of beating the GNMA market retu...
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The Four Pillars of Investing: Lessons for Building a Winning Portfolio_12 doc

The Four Pillars of Investing: Lessons for Building a Winning Portfolio_12 doc

... has a $3, 000 minimum. 284 The Four Pillars of Investing Table 14-1. “Taxable Ted’s” Value Averaging Path (for $500,000 Stock Allocation) Total Stock Tax-Managed Tax-Managed Market Index Small ... in a taxable account) or for a house down payment, as long as enough of the bonds are in a taxable account. Although the central tenet of asset allocation is to consider...
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