Living in Southeast Asia gives me the chance to attend the Cambodian water festival.
Locals and tourists pack the streets of the capital city Phnom Penh, laughing as they splatter each other with water to welcome in the new year – but the fun often comes at a cost. Pickpockets roam the crowd, lightening the wallets of the unsuspecting.
Shake your head at the tourists’ naiveté if you must. But most investors also lose money in crowds. And it costs them far more than it does Cambodian tourists
Read the rest of the article at the Globe and Mail.
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8 comments
Kunwak says:
November 6, 2012 at 7:56 pm (UTC 8 )
Hi Andrew,
I think this report is likely a better reference for the point you try to make in your article:
https://institutional.vanguard.com/VGApp/iip/site…
"As a result, we conclude that for most broadly diversified stock and bond fund portfolios (assuming reasonable expectations regarding return patterns, average returns, and risk), annual or semiannual monitoring, with rebalancing at 5% thresholds, is likely to produce a reasonable balance between risk control and cost minimization for most investors. Annual rebalancing is likely to be preferred when taxes or substantial time/costs are involved."
Cheers, Kunwak
Moe Muise says:
November 8, 2012 at 5:49 pm (UTC 8 )
Hi Andrew – your article is behind G&M's paywall. Any chance you can post the whole article here on your blog?
Moe
P.S. Loved your book – and also the feeling of adventure I get from many of your blog posts. My wife and I are planning to pack things up next year and move from Ottawa to Bali with our two boys.
Andrew Hallam says:
November 16, 2012 at 1:55 am (UTC 8 )
Hey Moe,
Ottawa to Bali?! That sounds fantastic! And thanks for the kind words about my book. When I click the link above, I get transferred to the Globe and Mail article. Isn't it working for you? I don't have a paid membership with the Globe and Mail, and I can access this article from my computer at work as well. Please let me know what you see. And congrats on the bold move! What will you be doing in Bali? I think you'll love it!
Matt says:
November 14, 2012 at 7:44 am (UTC 8 )
Andrew,
I followed a 25% allocation for canadian, American, international and bond indexes as listed in your book. Started in January and now time to rebalance. However, my percentages are all still very similar. I have one thats 25.5% and another at 24.3%. All the examples you show in your posts have much larger discrepancies (45% in this article for example). Am I doing something wrong to make my gains smaller? Should the percentages not all be similar even though my portfolio is small? I'm new at this so any advice would be greatly appreciated. Thanks
Matt
Andrew Hallam says:
November 16, 2012 at 1:58 am (UTC 8 )
Hi Matt,
I have a bond allocation that's equal to my age, as I suggested in my book on page 89. That's why my bond percentage is much higher than yours.
Cheers,
Andrew
Rob aka Captain and says:
November 22, 2012 at 5:05 am (UTC 8 )
Very good article and very true. I thought I was a smart investor when I got greedy with Penngrowth (PGF) almost dropped 30,000 dollars because I got seduced by the 9% yield. Thankfully a fellow blogger (www.thedividendninja.com) took a moment to email me from his job and told me it was a bad investment.
The best investment plan is the one that requires no special skills or thinking.
rob
Daniel says:
January 13, 2013 at 10:24 am (UTC 8 )
Moe is right. There is a paywall now on the Globe and Mail. The reason it is working for you Andrew is because you are allowed to view 5 free articles per month from one detected IP address. Moe, you've already used up your free articles. . but try switching to a tablet or laptop or other internet connected device to access 5 more free articles.
Andrew Hallam says:
January 13, 2013 at 3:54 pm (UTC 8 )
Thanks Daniel,
That's very interesting. And oddly inconsistent. I've been accessing the link through the same laptop and it gives me access each time. This is oddly frustrating. Thanks for the explanation though. There's certainly something to it.
Andrew