HAST – Hasting Entertainment BUY 80-20 Portfolio
On April 7th I purchased 110 shares of Hasting Entertainment – HAST for $4.51/share including the $4.50 commission from Zecco the total comes to a total investment $500.60. This was for the 80-20 Portfolio. I know, I am late in posting about it. But I had to lay out what the criteria were before I [...]
Value Investing Strategies for the Small Investor and 80-20 Portfolios
When you begin to invest you need to develop an investing strategy. Having a strategy is like a google map. It will help direct you down the right freeway and hopefully help you avoid the pitfalls, er traffic, and get to the destination you want. If you are at this website you know my overall [...]
Zecco vs. ChoiceTrade – Which is better?
As I narrowed my choice for the Small Investor Portfolio‘s broker, I decided I would set up an account at both Zecco and Choice Trade. One would be for the Small Investor’s Portfolio and the other for the 80-20 portfolio. I have my impressions of setting up accounts at both companies. Choice Trade- The first [...]
80-20 Investing – the Portfolio
I have decided to set up another real money portfolio to test out my ideas of 80-20 Investing, which I have previously discussed. For 20% of the effort I believe it is possible to get 80% of the investing result. The idea is fairly simple. Set up some investing criteria, and when a stock passes [...]
Easy Concept, Potentially Profitable Investing Strategy
This is really another in the Value Investing Series, but also an 80/20 Investing idea. To reiterate 80/20 investing is my value investing concept that attempts to get 80% of a solid return with 20% of the work. Not sure if it is really viable, although I am thinking of starting a test portfolio. But it is also the result of finding the website I mentioned in yesterdays blog about Empirical Finance Research.
The Problem with Back Testing Investing Strategies for Practical Investors
In surveying some of my favorite blogs recently, I have come upon something that hadn’t previously occurred to me, but could potentially alter how I invest. That is the problem with back testing Investing Strategies. Greenbackd posted an interesting starter piece on this subject called Walking the Walk, that led me back to the original blog from Aswath Damodaran called Transaction Costs and beating the Market. I have often thought there were practical problems with back testing, but I had not tried to articulate them until I read these posts. Both are excellent and worth reading. Damodaran, who is a Finance professor at NYU, and an author of Investment Fables (which I own), writes about the many ways to beat the market in general terms and then goes on to say, “Most of these beat-the-market approaches, and especially the well researched ones, are backed up by evidence from back testing, where the approach is tried on historical data and found to deliver “excess returns”.
Ben Graham’s Stock Selection Criteria – Value Investing Series
I found this idea in Tweedy Browne’s What Has Worked in Investing. And after a little more research I have included it in my Value Investing Series. In a “Test of Ben Graham’s Stock selection Criteria,” Henry Oppenheimer studied whether or not a set of Ben Graham’s investing criteria actually worked. Toward the end of Graham’s life he espoused a different, although related criteria to what he espoused in his master works Security Analysis and the Intelligent Investor.
80-20 Investing and Other Financial Heresies
I am slowly developing, over time, an investment method I call 80-20 Investing. Everyone knows the 80-20 rule. For any activity you spend 20% of your time to get 80% of the result. The converse is obviously also true. The last 80% of effort only yields a 20% result. I really don’t want to waste my time, so I am interested in maximum efficiency.
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