How Much Diversification is Enough?

Paul FennerPortfolio Management

I have talked quite a bit lately about diversification, especially holding a larger portion of cash than usual.  As most of you know, I run most of my client portfolios with a minimal amount of positions compared to most managers, especially mutual funds and ETFs. Most of the research that I have done on the topic of diversification indicates that to have a truly diversified portfolio, one … Read More

Corrections are a time to get things right…again

Paul FennerPortfolio Management

As we kick off another volatile week on Wall Street (to the downside as volatility can also mean to the upside) I came across two great articles last week to provide some perspective on the current equity market situation; Barry Ritholtz’s weekly column at the Washington Post and a WSJ article by Geoffrey Rogow titled 5 Days That Taught Investors … Read More

The Biggest Threat To Your Portfolio

Paul FennerPortfolio Management

The Biggest Threat To Your Portfolio is a well-written piece by Josh Brown at The Reformed Broker who highlights that all of the current noise going around in the financial markets such as Greece, China, or the Federal Reserve is not the biggest enemy of your portfolio.  The biggest threat to your portfolio is you. Brown notes in his article, … Read More

Where You Live Correlates to a 20% Investment Bias

Paul FennerPortfolio Management

We are always interested in learning more about our investing biases.  Hat tip to Barry Ritholtz for posting the graph below. Looking at the list of stocks that I follow, I definitely have a tilt towards the industrials. I think that this is likely not only because I grew up in the Midwest and currently live in MI, but also due to my extensive corporate … Read More

You’re only human: An economist explains how it hurts your portfolio

Paul FennerPortfolio Management

More and more a very important aspect of portfolio management is the psychological or behavioral side of investing.  Put another way understanding how your emotions, biases, and mode of thinking affect how you invest your assets. Richard Thaler professor of the Booth School of Business at the University of Chicago is widely considered to be the father of behavioral economics. … Read More

A Dozen Things I have Learned From…..

Paul FennerPortfolio Management

Two financial and investment bloggers that I follow on a regular basis are Barry Ritholtz and Ben Carlson.  Another blogger whose content that I also read is Tren Griffin.  Griffin runs 25IQ, a blog about business models, investing, technology, and other aspects of life that he finds interesting. He works for Microsoft; Previously he was a partner at Eagle River, a … Read More

Most investing is simple, but we complicate it

Paul FennerPortfolio Management

Money

I am a big believer of simplification, especially when it comes to investing where there is still a significant amount of luck involved with investment returns.  There is up to a certain point where a high IQ helps you before it starts to hurt you in the investment world. Morgan Housel of the WSJ touched on this in his article in which he zones in on … Read More

The All-Weather Portfolio

Paul FennerPortfolio Management

One of the preeminent financial bloggers that I follow is Barry Ritholtz at The Big Picture.  One of the big topics circling around the wealth management industry these days is the new book out by motivational speaker Tony Robbins.  In his book, Robbins interviews some of the greatest investors in the world and comes up with what he calls an “all-weather portfolio”  The … Read More