Recent content by bcinvest

I don't follow that method because my portfolio performs markedly better picking individual stocks. It would cost me far too much money to index.

A great article on the revenue impact of tax cuts. Claim That Tax Cuts "Pay For Themselves" Is Too Good To Be True — Center on Budget and Policy Priorities

That is an overused urban legend that is not justified by the facts. Tax cuts lower revenue and increase deficits.

That train has left the station. To split the tax the rollover needed to be completed in 2010.

You may want to make sure your plan allows distributions before normal retirement age. That is one of the drawbacks to relying on 401(k)'s for early retirement. You may not have access to your money until 65. Even if your plan allows distributions before age 65 it could be amended to allow no...

No I was talking about the believers of modern finance theory. Where are all of the superstar investors that adhere to the modern finance dogma. There aren't any. Modern finance theory does not stand up to empirical testing.

If you construe a discussion on finance theory as a sales pitch you have a very active imagination.

Where are all the modern finance experts with records like Buffett. Maybe Buffett is right when he ridicules efficient markets, diversification, beta, VAR and other nonsense.

I know numbers is hard but counting shouldn't be that tough. Are you offended at the idea that some investors can beat the market? Why would you care how often I mentioned it? It seems to strike a nerve with you when I do.

Sub optimal strategy based on what, opinion? So is NFL football, you still have winners and losers. That it is a zero sum game is irrelevant when looking at a small subset of investors. I consider it good odds because of having beat the market in 10 of the last 11 years by on average more...

Relying on failed ivory tower finance theory is not the basis to prove anything. The idea of efficient capital markets has so many holes in it that it is useless. The flash crash is just one small example.

That has already been done: SSRN-Finiteness of Variance is Irrelevant in the Practice of Quantitative Finance by Nassim Taleb Out-of-Equilibrium Economics and Agent-Based Modeling - Microsoft Academic Search SSRN-The Virtues and Vices of Equilibrium and the Future of Financial Economics by...

What mathematical proof is acceptable? There is nothing in the data that says some can't consistently outperform. You bring up a good point. the return of the market is the change in value of all companies less transaction costs. The less investors as a whole pay for transaction costs the...

Yeah, I agree it is overrated maxing out your tax deferred accounts. If you plan on leaving early it pays to have after tax accounts. Especially if you manage them tax efficiently.

Nice post. I am not sure if there is a way to measure whether an investor can outperform the market. That is much different that believing that it can't occur. I know that quarterbacks on average have a 50% winning percentage. If given a choice I am going to take a Tom Brady or a Peyton...