Showing posts with label investing. Show all posts
Showing posts with label investing. Show all posts
Wednesday, May 30
Corporate Realty Income Fund I, L.P.
Finally paid out. Their docs said something like it amounted 8% per year, not compounded.
Wednesday, February 28
Dollar Cost Averaging vs.Lump-Sum Investing
Let’s say you have $100,000 to invest, and you want to achieve a portfolio of 90% stocks (modeled as the S&P 500) and 10% bonds (T-Bills). But that sounds risky to you. You decide to instead invest gradually over 10 years, every month putting a little bit more in, until you finally put $90,000 into stocks.
But what if you instead put everything at once into 50% stocks and 50% bonds, and kept those 50/50 proportions for the entire 10 years instead? That would also reduce your risk. You may be surprised to find out that historically the 50/50 rebalanced portfolio actually had the same amount of volatility than the 90/10 dollar cost averaged portfolio, but with a higher average return (8.37% vs. 8.05%).
Sunday, February 25
The worst investors
...the worst-performing accounts belong to those people with the highest education...I've come the conclusion that highly-educated people often believe they know a lot about things outside their own field, even without having so much as read anything about it.
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