Greenblatt’s Magic Formula Strategy: Methodology, Backtest, Performance, Investment Returns

The Magic Formula Strategy, popularized by Joel Greenblatt’s book The Little Book That Beats the Market, has received mixed reactions from the stock market. Some investors have reported positive results using the strategy, while others criticize it for lacking a…

Ben Felix Model Portfolio (Rational Reminder, ETFs, Performance, Returns Analysis)

The Ben Felix Model Portfolio, developed by Ben Felix and Cameron Passmore of PWL Capital, is a globally diversified investment strategy that utilizes index funds and tilts towards specific factors, such as Size, Value, and Profitability, for added potential returns….

Why Diversification is Important in Investing: Benefits, Strategies, and Asset Allocation Insights

Harry Markowitz won the Nobel Prize in 1990 for his work in showing mathematically how to reduce risk and create better returns by diversifying across regions and assets. Risk is measured in volatility, i.e. how your assets fluctuate in price….

Meb Faber’s Momentum and Trend-Following Trading Strategy Analysis (Gold, Stocks, And Bonds)

Meb Faber, a famous money manager and writer, has several times stated he is a trend follower at heart. Back in 2015, he published an article about momentum and trend-following strategy called Meb Faber’s Three-Way Model in gold, stocks, and…

An Investment Checklist Example – Disciplined Investing (Why You Should Have A Checklist)

An investment checklist is handy, no matter your time horizon or investment style. The bare minimum is a mental checklist, but preferably it should be written. Like the aviation industry developed checklists to avoid disasters, investing is about error removals….

Fragile vs. Antifragile Investing (What Is Antifragile Investments – An Antifragile Portfolio in 2024)

Nassim Nicholas Taleb invented the word antifragile in his book with the same name when he was looking for the opposite of fragile. Antifragile is relevant for investors. What is antifragile investing? In this article, we look at how you…

What Happens to Stocks When Inflation Is High? (How Does Inflation Affect Stocks – Strategy)

Inflation is one of the most popular and important economic indicators. It is monitored by everyone — businesses, financial regulators, and investors. Not only does it guide regulators in their policies, but also, it affects businesses, which in turn, influences…

The 60/40 Strategy Portfolio – Is It Dead? Backtests, Alternatives, And Substitutes Analysis

Determining the right mix of assets to help you reach your short-term and long-term financial goals is the key to building a winning investment portfolio. For many years, financial advisors and experts recommend the 60/40 portfolio because of its simplicity…

Ray Dalio’s All Weather Portfolio (Backtest, Returns And Performance Analysis)

Ray Dalio’s All Weather Portfolio is a pretty well-known portfolio, and for good reasons, in our opinion. Ray Dalio and his team at Bridgewater Associates constructed the All Weather Portfolio to withstand every economic environment (and shocks) possible. What exactly…

Do Stocks Outperform Treasury Bills? (Facts And Evidence – Not What You Expected)

Hendrik Bessembinder, an academic, published a study in 2017 that went on to become widely spread and known. His hypothesis was pretty straightforward: do stocks outperform Treasury Bills? No, most stocks fail to beat one-month Treasury Bills during their lifetime…

How Does Gold Perform When Inflation Is High? – (Backtest, Performance, Strategy, Results Analysis)

Throughout history, gold has consistently held its position as the preferred global currency. Now, investors primarily acquire gold as a safeguard against economic instability and, of course, inflation. How does gold perform when inflation is high? Gold has famously been considered…

JL Collins’ Simple Path to Wealth Portfolio – ETFs, Return, Performance, Risk Analysis

The Simple Path to Wealth Portfolio by JL Collins is a “lazy” index diversified portfolio that allocates assets across two asset classes: stocks and bonds. These two asset classes are divided into two categories: U.S. stocks and U.S. bonds. Thus,…

Alexander Green’s Gone Fishin’ Portfolio – ETFs, Returns, Performance Analysis

The Gone Fishin’ Portfolio by Alexander Green is a “lazy” index diversified portfolio that allocates assets across 4 asset classes: stocks, bonds, REITs and precious metals. These 4 asset classes are divided into 10 categories: U.S. Stocks, U.S. Small Cap…

Roger Gibson’s 5 Asset Portfolio – Strategy, Allocations, Performance, Returns Analysis

The 5 Asset Portfolio by Roger Gibson is a “lazy” index diversified portfolio that allocates assets across 4 asset classes: stocks, bonds, REITs, and commodities. These 4 asset classes are divided into 6 categories: U.S. stocks, international stocks, U.S. bonds,…

Rick Ferri’s The Core 4 Portfolio – Strategy, Allocations, Performance, Returns Analysis

The Core 4 Portfolio by Rick Ferri is a “lazy” index diversified investment portfolio that allocates assets across 3 asset classes: stocks, bonds, and REITs. These 3 asset classes are divided into 4 categories: U.S. stocks, international stocks, intermediate bonds,…

What Are The Historical Returns For Stocks, Bonds, Gold, Real Estate, And Cash? (Asset Class Returns)

Do you sometimes wonder what are the historical returns for stocks, bonds, gold, real estate, and cash? Which asset class has performed the best over the last century? We are wondering, and we thus decided to compile all the data…

What Are The Odds Or Likelihood Of Losing Money In The Stock Market Long-Term? (Facts, Statistics Analysis)

The majority of investors think long-term. For instance, most US households, excluding the wealthiest 1%, predominantly keep their stocks, bonds, and bills in retirement portfolios. In fact, those not in the top 1% or even 10% of wealth distribution have…

Commodity Investment Strategies with TradingView and Pine Script: Backtesting and Rule-Based Approach

Commodities are difficult to trade profitably, with few strategies offering any statistical edge. Despite this, finding effective commodities strategies might be worth the effort, as they allow for profits that are uncorrelated with those of other strategies and tend to…

10 Top Vanguard ETFs for Buy-and-Hold Strategies: Evaluating Costs, Returns, and Performance

Buy and hold has worked very well for long-term investors. History has also taught us that active money managers have underperformed S&P 500 or their benchmarks. We dream of becoming Warren Buffett, but most of us are below-average investors. Thus,…

9 Top Vanguard ETFs for Ultimate Diversification: Assessing Costs, Returns, and Performance

Many investors prefer to invest using passive investment strategies and “lazy” (but smart?) portfolio management. Increased knowledge, lower costs, and a rise in fund offerings (both ETFs and mutual funds) have contributed to this. Passive strategies include a popular asset…

Asset Allocation Investment Strategy (Models, Strategies, Portfolios, Analysis, Returns)

Asset allocation is the allocation of investments across different classes of assets. In a broad sense, this means a combination of stocks, bonds, various securities and money market instruments. Within these classes, subclasses are also distinguished: Risk and return The…

Meb Faber’s Global Asset Allocation Portfolio (ETFs, Backtest, Returns, Performance, Drawdowns and Analysis)

Today we will look at Meb Faber’s Global Asset Allocation portfolio from his book of the same name. The Global Asset Allocation portfolio is a passive investment strategy that aims to provide investors with a diversified exposure to global asset…

Net-Net Value Investing Strategy – What Is It, Risk, Backtest, Returns, Performance Analysis

The Net-Net Value Investing Strategy, developed by Benjamin Graham and Warren Buffett, evaluates a company’s stock by considering its net current assets per share after adjusting for doubtful accounts and inventory values. Let’s find out how the net-net strategy works….

Paul Merriman Ultimate Buy And Hold Portfolio: Backtest, Allocations, and Performance Analysis

The Merriman Ultimate Buy And Hold Portfolio by Paul Merriman aims to diversify investments as widely as possible across asset classes (bonds & stocks), countries, company size, and valuation. The goal is to have aa portfolio that achieves good risk-adjusted…

Paul Farrell’s The Second Grader’s Starter Portfolio: Backtesting, Allocations, and Performance Analysis

The Second Grader’s Starter Portfolio by Paul Farrell is a passive index portfolio that aims to diversify investments across stocks and bonds. The Second Grader’s Starter Portfolio strategy can be implemented with only 3 ETFs. You do not need to…

Bill Schultheis Coffeehouse Portfolio: Allocations, Performance, and Returns Analysis

The Coffeehouse Portfolio from Bill Schultheis aims to diversify investments across stocks, REITs, and bonds. The Schultheis Coffeehouse Portfolio strategy can be implemented with 9 ETFs. You do not need to pick individual stocks and bonds. Accordingly to our backtests…

Coward’s Portfolio by Bill Bernstein: Allocations, Performance, and Returns Analysis

The Bernstein Coward’s Portfolio by Bill Bernstein aims to diversify investments as widely as possible across asset classes (bonds & stocks), countries, company size, and valuation. Bill Bernstein Coward’s Portfolio strategy can be implemented with only 9 ETFs, of which…