Muscular Investing

January 2019

Muscular Investing

Jack Bogle Reveals Investing Secrets in Tell-All Book - part 4

by Brian Livingston

Would you like to know how to have an extra 1 trillion dollars in your pockets? Bogle did it — and you can benefit. • By some estimates, the Vanguard Group lowered fees so much that its shareholders alone saved a cool $559 billion. In addition, the ‘Vanguard Effect’ forced competing fund providers to collectively lower their fees an equal amount. Fees you don’t pay compound in your account. • Parts 1, 2, and 3 of this column appeared on Jan. 15, 17, and 22, 2019. In his personal life, Bogle was incredibly frugal. Maybe it was because he was born in the Great Read More 

Muscular Investing

Jack Bogle Reveals Investing Secrets in Tell-All Book - part 3

by Brian Livingston

Bogle’s secret in building America’s largest fund provider is setting it up from the beginning as a ‘mutual’ organization, similar to a worker’s cooperative. • Vanguard doesn’t own its funds, the funds own Vanguard and can make the firm lower its fees to benefit investors. It’s a hilarious irony that Vanguard’s socialist model has beaten Wall Street’s wealth-management firms at their own game. Figure 1. A life-size statue of Jack Bogle stands on the Vanguard corporate campus in Malvern, Pennsylvania. Photo by Blair duQuesnay/The Belle Curve. Read More 

Muscular Investing

Jack Bogle Reveals Investing Secrets in Tell-All Book - part 2

by Brian Livingston

Bogle’s new book, Stay the Course, reveals one little thing individual investors do that costs them one-third of their return — but is easily prevented. • A difference between the trading of investors in traditional index mutual funds and that of investors in the flashier index exchange-traded funds (ETFs) explains a lot about the varying amounts both groups end up putting in their pockets. • Part 1 of this column appeared on Jan. 15, 2019. • John Clifton Bogle passed away on Jan. 16, 2019, four months shy of his 90th birthday. My hope is that, by understanding his Read More 

Muscular Investing

Jack Bogle Reveals Investing Secrets in Tell-All Book

by Brian Livingston

John C. Bogle — known to all as ‘Jack’ — has been advocating the simplest portfolio strategies for decades. Surprise! They’ve outperformed the S&P 500. • In the last book he says he’ll ever write in his lifetime, the legendary index-fund pioneer lets fly with some scathing but profitable revelations about mutual funds, ETFs, and the colorful cast of characters who made them all come to life. Figure 1. Bogle in 2016. Photo by Daniel Burke/Institute for the Fiduciary Standard/CC-BY 4.0. • More than 100 million households in the US Read More 

Muscular Investing

Which ETFs Will Outperform This Month? Here's the List - part 4

by Brian Livingston

If you want the best raw performance over the long term, expanding your menu to 13 asset classes, plus a simple mechanical formula, is just the ticket. • Standing on the shoulders of giants in finance — including Nobel Prize winners — ETF pioneer Mebane Faber developed and publicly disclosed the best way to select the low-cost index funds that are most likely to outperform in the coming month. Figure 1. Faber is co-author of the 5-asset Ivy Portfolio and the architect of an improved 13-asset strategy, which the book Muscular Portfolios calls the Papa Bear Read More 

Muscular Investing

Which ETFs Will Outperform This Month? Here's the List - part 3

by Brian Livingston

Jack Bogle, the founder of the Vanguard Group, has urged investors for over two decades to hold a simple 50/50 portfolio: half US stocks and half US bonds. • The book Muscular Portfolios calls this ‘the Baby Bear Portfolio.’ On first glance, it strikes many traders as too simple to work. But over the past 46 years, it’s delivered almost the same total return as the S&P 500 with much smaller losses. Bogle addresses the Council of Institutional Investors in 2005. Photo by Ken Cedeno/Bloomberg/Getty Images. • Parts 1 and 2 of this Read More 

Muscular Investing

Which ETFs Will Outperform This Month? Here's the List - part 2

by Brian Livingston

The secret to long-term performance is not letting your portfolio skyrocket during bulls. Instead, keeping your losses small in bears is the key. • A clone of a strategy by Steve LeCompte delivers on both counts using simple rules. Surprisingly, it has similarities to the way Warren Buffett racks up his huge winnings in the market - and it’s easy for you to do the same. • Part 1 of this column appeared on Jan. 1, 2019. • I mentioned in Part 1 of this column that Warren Buffett’s portfolio, which trades under the symbol BRK/A, doesn’t beat the S&P 500 Read More 

Muscular Investing

Which ETFs Will Outperform This Month? Here's the List.

by Brian Livingston

The S&P 500 crashes more than 30% every 10 years, on average. Another such destruction of your wealth is on the way. • Can a simple formula keep your life savings from being shredded while still delivering market-like returns across bear-bull cycles? The answer is ‘Yes.’ Best all of, it’s free of charge. The steps are fully disclosed and supported by years of actual use. Figure 1. Users of Muscular Portfolios check a website once a month to make sure they hold the three asset classes with the best statistical odds of rising in the 30 days to come. Source: Read More