Scott Burns -- How much diversification?

intercst · 07-26-2005, 10:06 AM

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

BigMoneyJim · 07-26-2005, 10:51 AM

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

Spanky · 07-26-2005, 10:15 PM

It seems that Scott Burn's six-fold passive portfolio has performed slightly better than Coffee House portfolio.

preben · 07-26-2005, 11:58 PM

Diversification rocks - in some cases more asset classes will drag down the return, but normally at less volatility - the "price" we pay

.

unclemick · 07-27-2005, 08:00 AM

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.

ShokWaveRider · 07-27-2005, 08:33 AM

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

ats5g · 07-27-2005, 10:33 AM

SWR,

see this article from scott.

- Alec

Olav23 · 07-27-2005, 10:43 AM

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.

ShokWaveRider · 07-27-2005, 10:55 AM

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

07-26-2005, 10:06 AM	#1
intercst 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

07-26-2005, 10:51 AM	#2
BigMoneyJim Thinks s/he gets paid by the post Join Date: Feb 2003 Posts: 2,390	Re: Scott Burns -- How much diversification? No-registration syndicated column here but without the chart: http://www.chron.com/cs/CDA/ssistory...siness/3281839

07-26-2005, 10:15 PM	#3
Spanky Thinks s/he gets paid by the post Join Date: Dec 2004 Location: Minneapolis Posts: 2,784	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.

07-26-2005, 11:58 PM	#4
preben 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 .

07-27-2005, 08:00 AM	#5
unclemick Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Jul 2003 Location: north of Kansas City Posts: 5,560	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.

07-27-2005, 08:33 AM	#6
ShokWaveRider Full time employment: Posting here. Join Date: Jun 2003 Posts: 583	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 __________________ Retirement Definition - Not Having To Work, But Not Neccessarily Not Working - SWR 2000

07-27-2005, 10:33 AM	#7
ats5g Full time employment: Posting here. Join Date: Oct 2003 Posts: 934	Re: Scott Burns -- How much diversification? SWR, see this article from scott. - Alec

07-27-2005, 10:43 AM	#8
Olav23 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.

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