Rick Ferri Blog

Wiki’s In-depth Vanguard Data

Rick Ferri — Tue, 29 May 2012 14:25:14 +0000

Where do you get hard to find information about Vanguard mutual funds? The firm’s website is a good place to start. If that doesn’t work, try the Bogleheads’ Wiki. It’s an in-depth collaborative project by volunteers of the Bogleheads.org community. The site covers all things Vanguard, as well as a diverse menu of personal financial [...]

10 Things We Could Use Less Of

Rick Ferri — Thu, 24 May 2012 15:07:06 +0000

We are fortunate to live in a free country that has prospered. We have a lot of stuff because of this. However, sometimes there is too much stuff, and that has unintended consequences. Here is a list of 10 things we would be better off not having as much of: 10. Traffic: Cities with the [...]

Good Companies Make Mediocre Stocks

Rick Ferri — Tue, 22 May 2012 13:26:18 +0000

The classic answer to the classic question about how to select stocks for the long run is to “buy good companies at an attractive price and keep them as long as the company is managed well.” Good luck with that. It doesn’t work as advertised. For better results, buy a total stock market index fund. [...]

One ETF Firm Hints at 12b-1 Fees

Rick Ferri — Thu, 17 May 2012 13:15:59 +0000

Exchange-traded funds are not required to pay brokerage firms a 12-b1 fee to be held in an account, but one ETF company appears to be preparing for this. As the number of ETFs expands and marketing expenses rise, brokerage firms are stepping up pressure on ETF companies to pay them 12b-1 fees. In response, SSgA [...]

Schwab ETFs Struggle in the Shadow of Vanguard

Rick Ferri — Mon, 14 May 2012 15:08:23 +0000

Charles Schwab would like to say they have Vanguard ETFs in their sights, but that would require a very powerful telescope. It isn’t realistic to compare the two ETF providers yet because Vanguard dominates in number, total assets, and even performance. That being said, I commend Schwab’s efforts to promote low-cost index investing and hope [...]

Horseshoes, Hand Grenades and Asset Allocation

Rick Ferri — Mon, 07 May 2012 13:58:28 +0000

Ask people to name two things where being close counts and you’ll likely hear the popular idiom horseshoes and hand grenades. Getting close is good enough in the game of horseshoes where a toss landing near the stake scores points. With grenades, a wide fragmentation radius ensures anything close becomes a casualty. You can add [...]

Betsy the Cow Loves Index Funds

Rick Ferri — Fri, 04 May 2012 12:26:54 +0000

Betsy the Cow knows something that most investors don’t, and it’s the reason she buys index funds. Betsy knows that the milk she and her friends produce gets shipped to different resellers, where it is packaged in different containers and sold at different prices. But it’s all the same milk, and that’s why she buys [...]

Divide and Conquer ETFs

Rick Ferri — Mon, 30 Apr 2012 13:02:34 +0000

Exchange-traded products (ETPs) are a disorganized mess. The industry needs standardized product groupings so that investors have an easier time sorting and comparing funds. I propose a “first cut” classification method that sorts ETPs into four basic categories. Figure 1 illustrates the four proposed groupings by their investment objective: benchmark, strategy, hedge and active. All [...]

Apple at $2,000 as the Dow Doubles

Rick Ferri — Wed, 25 Apr 2012 13:17:03 +0000

You heard it here first − Apple stock could hit $2,000. It is possible. Also, the Dow could double in the next couple of years. It IS possible. All media people should contact me directly for details because they are too sensitive to discuss here. I do television also. Actually, I don’t believe that Apple [...]

Are You a Right Brain or Left Brain Investor?

Rick Ferri — Mon, 23 Apr 2012 14:48:38 +0000

Do you jump when you hear a good investment story, or do you wait and research the pertinent facts before committing your capital? How you invest makes a big difference in your wealth. Right brain investors respond quickly to investment ideas soon after envisioning an increase in wealth, even if the numbers don’t add up. [...]