Investing Strategies


A post detailing the basics of the best methods and practices for the typical investor over the long-term. Read this post if you want an overview of my investing philosophy for the majority of individuals. The only seven mutual funds you will ever need to own, asset allocation, re-balancing, and more.

Simple to implement passive low-cost index investing portfolios as devised by some of the greatest investing minds. Performance, asset allocation, and placement of funds for optimal tax efficiency are discussed.

Which accounts to place various investments to minimize one's tax burden is outlined.  Various research reports and hypothetical growth scenarios are outlined and analyzed.  Conclusions as to the importance of asset location over various time frames are drawn.  While asset allocation, security selection, and fees may be of the utmost importance, asset location is frequently overlooked even though its consequences can be substantial.

The Fama and French Three Factor Model is introduced to help explain the benefit of small-cap and value asset classes.  These advantages are assessed from an expected return and diversification standpoint, and recommend weightings of these classes are presented.   Data are shown that strongly support the conclusion that while small-value is more volatile and risky, individual investors more than make up for this based on historical returns.

Why investors should seek out stocks with reliable dividend payouts and reasonable yields. The power of compounding and long-term performance of dividend paying stocks.


The pros and cons of mutual funds and ETFs from a cost, performance, and investing style standpoint. Conditions as to when it makes sense to invest in mutual funds over ETFs and vice versa.

Important criteria to examine when picking an individual stock are explored in this post. Dividend yield, growth, and fundamental valuation techniques are discussed among other criteria.

With interest rates extraordinarily low (and remaining low in the foreseeable future), alternatives to savings accounts are examined for the portion of one's portfolio not dedicated to long-term growth, but not part of one's emergency fund. Specifically, the appeal of municipal bonds and muni bond funds are detailed.


A common strategy of finding companies with solid balance sheets and discounted stock prices is explored. Specifically, how to set up screens to find such stocks that meet Benjamin Graham's NCAV criteria, tools to use to evaluate such companies, and inherent risks involved with utilizing this strategy.

Harry Browne's Permanent Portfolio - which is designed to increase purchasing power over any economic cycle by dividing its assets into four equal part of gold, stocks, bonds, and cash - is explored. Applicable mutual funds and ETFs are explicitly outlined, while the historical returns of each asset class as well as the overall strategy's returns are relayed and analyzed.

A book review that also outlines an investing strategy applicable to those with the requisite time and knowledge base. Dividing the portfolio into various segments (foundation, rotational, and opportunistic) based on objective and growth prospects as well as how to invest each portion is examined. The appropriate allocation of such aforementioned segments, comparisons to a more passive investing approach, and diversification of strategies is investigated.

Sy Harding's market timing strategy, the Seasonal Timing Strategy (STS), is back-tested and contrasted with buy-and-hold. A performance analysis is conducted over bull and bear markets (over an 18-year period) as well as year-by-year fluctuations. Conclusions as to the efficacy and feasibility of such a strategy are drawn.

Popular market timing strategies commonly employ exponential moving averages.  One such simple strategy utilizing long-term 50-, 100-, and 200-day EMAs is back-tested with a $10,000 investment in the S&P 500 commencing in 1993.  A performance analysis is laid out in addition to year-by-year results and volatility measures. Determinations of the reliability and future ramifications of this strategy are outlined.

A common sector rotation strategy using Fidelity's Select Mutual Funds is back-tested and contrasted with buy-and-hold as to its performance and inherent risk factors and volatility.

Note: This post serves as an organizational tool for easier navigation of the site and is subject to change upon the completion of new applicable posts.
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