Common Sense Investing Reaps a $46,800 profit so far – cont

The account mentioned on the below post is further updated here. 

From September 11, 2006 to February 17th, 2011 the initially invested $200,000 has gained $53,340.76 without added money.

  • Portfolio Value: $253,340.76
  • Gain / Loss: +$53,340.76 (26.67%)


Ticker

Company Name

Cost

Shares

% of Total

Last Trade

Price Chg.

Price Chg. %

Current Value

Gain / Loss

Gain / Loss %

Today’s Gain / Loss

      Cash

NA

     

-$6,019.12

     
     

Overall Realized Gain/Loss

         

+$28,693.34

   
     

Total

     

0.37%

$253,340.76

+$53,340.76

26.67%

+$930.86

                       

VBMFX

Vanguard Tot Bd;Inv

$10.04

6,906.5842

27.96%

$10.50

+$0.02

0.19%

$72,519.13

+$3,152.57

4.54%

+$138.13

VGTSX

Vanguard Tot I Stk;Inv

$15.32

5,875.7854

37.02%

$16.34

+$0.08

0.49%

$96,010.33

+$5,988.51

6.65%

+$470.06

VTSMX

Vanguard T Stk Idx;Inv

$28.01

2,688.8815

35.02%

$33.78

+$0.12

0.36%

$90,830.42

+$15,506.33

20.59%

+$322.67








Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I’m happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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6 Responses

  1. Davo says:

    @ Andrew

    Hi Andrew, I notice that you started out with the three portfolios at 33.3% e… and now they are 27.96%, 37.02% 35.02%
    Why have you done that?

  2. That's right Davo. I only rebalanced this portfolio once—because I was lazy. The respective allocations of this portfolio will fluctuate over time. Ideally, if it was a real portfolio for a working person, that individual would add fresh money to their investments each month. To maintain their desired allocation (in this case it was splitting the U.S. index, the international index and the bond index in thirds) they would need to buy the index each month, which hasn't performed as well. By purchasing the worst performing index, they'll be rebalancing their portfolio over time, and buying "low".

    In this specific case, you can see that the international and U.S. stock indexes are ahead of the bond index. So to rebalance it (because I am not adding fresh money) I would just sell off some of the international and U.S. market indexes, to add to the bond index.

    Investors following investment news might ask, "Why buy bonds when the media suggests that they are overvalued or destined to underperform over the next little while?"

    If you want to beat 90% of the pros, ignore the media. Keep costs low, diversify, stick to a strategy and rebalance annually (or by purchasing the lagging index) without second guessing your decisions. The ten percent of investors who roll the dice and beat this strategy over the next 15 years might get smug about it. But statistically speaking, they won't be the same investors who beat this strategy in the following 15 year period. If you want to ensure that you're in the 90th percentile after all fees and taxes, following a method like this will do it. Academics all know that. But most people fall victim to "wanting to get in that top 10%".

    Thanks for the question Davo. I think that some of my readers will find it helpful.

  3. J says:

    Your blog is so sexy!!!!

  4. Yilmaz says:

    Hello Andrew,

    thank you so much for the excellent book. I've learned so much from it. I opened an account with Vanguard and planning on buying those 3 index funds you've mentioned.

    here is my allocation structure:

    30% VBMFX

    35% VGSTX

    35% VTSMX

    I will be putting in a big chunk of my savings and my questions is about VTSMX, looks like this index fund price is pretty high at the moment. What do you recommend? Should I wait to buy, change my allocation?

    thank you so much!

    Yilmaz

  5. Barry says:

    This must be doing well presently; i'd guess its up to $280k + dividends?

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