Quality Can Help Put the Odds in Your Favor

Let’s start this week’s commentary with a hypothetical scenario: A person you trust says they have two stock picks for you. Both stocks are expected to rise in price. The charts for each stock are showing similar formations and the recent news seems equally positive. You only have enough available cash to buy one of…

 

The January 2018 AAII Journal is Now Available Online.

  Feature Article » Polar Opposite: MAGNET Complex Goes From Bottom to Top in 2017 by Wayne A. Thorp, CFA Our annual review of the AAII screening strategies finds MAGNET Complex on top after being the worst performer in 2016.   Portfolio Strategies » Insights on Using the 4% Withdrawal Rule From Its Creator by…

 

Using Sell Signals to Improve Results

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Model Shadow Stock Portfolio: Special Update and Rule Changes Ahead of the next quarterly review of the Model Shadow Stock Portfolio, which will take place at the end of this month, AAII’s chairman James Cloonan reveals some key changes to the selection rules used…

 

The November 2017 AAII Journal is Now Available Online

Feature Article » Birth of an Idea: How AAII Got Started by John Bajkowski , Charles Rotblut, CFA and James B. Cloonan James Cloonan shares what led him to start AAII, along with the inside story of AAII’s Model Shadow Stock Portfolio. Features » Media Talk About James Cloonan and AAII by AAII Staff A…

 

Tweedy, Browne: “What Has Worked in Investing”

Many individual investors embody value investing—Benjamin Graham and Warren Buffett immediately come to mind. Among investment management firms, perhaps none is as devoted a follower of the principles of value investing as Tweedy, Browne Company. In his book “Smarter Stock Picking” (FT Press, 2010), David Stevenson wrote: “Graham may be the patron saint of most…

 

A Rules-Based Approach to Managing a Portfolio

A prelude to this week’s commentary: BlackRock made financial news headlines by announcing a change in how some of its active mutual funds will be managed. Rather than rely on human stock picking, the company is shifting to a heavy reliance on quantitative strategies. Commentary about the change was quick to use the word “robots”…

 

AAII Journal April 2017 Issue Now Available

Feature Article: Portfolio Strategies » Factors Allow Investors to Think Differently About Diversification Tilting a portfolio to a small number of factors, including value and size, can increase returns while at the same time reducing risk. In This Issue: Portfolio Strategies » Asset Allocation, RMDs and Portfolio Survival A diversified portfolio not only increases return…

 

The Top AAII Stock Screen for 2016

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Deep Value Investing Has Not Gone Out of Style Benjamin Graham first outlined his approach to deep-value investing nearly 60 years ago. Updated research revisits Graham’s approach to see whether it can still stand up in the era of quantitative screens and increasing sophistication…

 

How to Keep Headlines From Driving Your Portfolio Decisions

On behalf of everyone at AAII, I want to say thank you to all of you who have served or are currently serving in the military. The stock market will be open Friday, Veterans Day, but banks and government offices will be closed. Big, unexpected events commonly trigger strong emotional reactions. The wiring in our…