Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Scott Burns -- How much diversification?
Old 07-26-2005, 10:06 AM   #1
Recycles dryer sheets
 
Join Date: Jun 2002
Posts: 248
Scott Burns -- How much diversification?

Article includes a chart describing the effect of moving from a 2-asset class allocation to 7-asset classes.

http://www.dallasnews.com/sharedcont...s.d44be68.html

intercst
__________________

__________________
***** puts the "hoco" in Hoco-mania
intercst is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Scott Burns -- How much diversification?
Old 07-26-2005, 10:51 AM   #2
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Re: Scott Burns -- How much diversification?

No-registration syndicated column here but without the chart: http://www.chron.com/cs/CDA/ssistory...siness/3281839
__________________

__________________
BigMoneyJim is offline   Reply With Quote
Re: Scott Burns -- How much diversification?
Old 07-26-2005, 10:15 PM   #3
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: Scott Burns -- How much diversification?

It seems that Scott Burn's six-fold passive portfolio has performed slightly better than Coffee House portfolio.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: Scott Burns -- How much diversification?
Old 07-26-2005, 11:58 PM   #4
Recycles dryer sheets
 
Join Date: Jul 2002
Posts: 420
Re: Scott Burns -- How much diversification?

Diversification rocks - in some cases more asset classes will drag down the return, but normally at less volatility - the "price" we pay .
__________________
preben is offline   Reply With Quote
Re: Scott Burns -- How much diversification?
Old 07-27-2005, 08:00 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,409
Re: Scott Burns -- How much diversification?

Diversification sucked back in the heady days of the 'da bull bubble' - Bernstein's portfolio's he posted on Efficient Frontier lagged the U.S. market.

But the worm turned after 2000 - and then guess what looked good - heh, heh, heh.

1. In hindsight - someone will always beat the pants off 'your' portfolio.

2. In my multi asset days(yes I was sinner in the 80's) - I tryed to swag weighted asset SD to get a portfolio SD (never heard of correlation that I can remember). Same with expected growth rates for each asset class. Was kind of a pain in the but and limited as to growth - better on SD.

3. In ER - defense is better than offense. Current portfolio yield being my linebackers - with a little diversification as cornerbacks and pension/SS as safety.

__________________
unclemick is offline   Reply With Quote
Re: Scott Burns -- How much diversification?
Old 07-27-2005, 08:33 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Historic Florida
Posts: 1,647
Re: Scott Burns -- How much diversification?

Is there a list of what wach of the portfolios invests in? I searched Google for "Six Ways" portfolio and cane up with not much of interest.

Thanks

SWR
__________________
"Arguing with an Engineer is like rolling in the mud with a pig. Just remember that the pig likes it."
ShokWaveRider is offline   Reply With Quote
Re: Scott Burns -- How much diversification?
Old 07-27-2005, 10:33 AM   #7
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Re: Scott Burns -- How much diversification?

SWR,

see this article from scott.

- Alec
__________________
ats5g is offline   Reply With Quote
Re: Scott Burns -- How much diversification?
Old 07-27-2005, 10:43 AM   #8
Recycles dryer sheets
 
Join Date: Jul 2005
Posts: 423
Re: Scott Burns -- How much diversification?

Six ways:

Vanguard Total Market Index
Vanguard Inflation Protected Securities
Vanguard Total Intl Stock Index
American Century Intl Bond Fund
Vanguard REIT Index fund
Vanguard Energy Fund

All in equal proportions.


__________________
Olav23 is offline   Reply With Quote
Re: Scott Burns -- How much diversification?
Old 07-27-2005, 10:55 AM   #9
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Historic Florida
Posts: 1,647
Re: Scott Burns -- How much diversification?

Quote:
Originally Posted by Olav23
Six ways:

Vanguard Total Market Index
Vanguard Inflation Protected Securities
Vanguard Total Intl Stock Index
American Century Intl Bond Fund
Vanguard REIT Index fund
Vanguard Energy Fund

All in equal proportions.


Thanks
__________________

__________________
"Arguing with an Engineer is like rolling in the mud with a pig. Just remember that the pig likes it."
ShokWaveRider is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Scott Burns: The Critical 50ís REWahoo Young Dreamers 50 07-21-2008 12:35 AM
Scott Burns' own story sparkee Other topics 3 10-09-2005 03:01 PM
Scott Burn's Swan Song? Telly FIRE and Money 26 10-05-2005 01:58 PM
Scott Burns - SWRs and Int'l Diversification intercst FIRE and Money 23 07-10-2004 04:08 PM
Scott Burns doesn't want us to retire! Telly FIRE and Money 27 11-06-2003 01:53 PM

 

 
All times are GMT -6. The time now is 12:55 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.