Archive for October, 2011
Many investors’ existing portfolios are not well suited to accomplish their goals. But how does one determine whether a portfolio is well constructed or poorly constructed?
I have categorized the important elements into five categories. These broad categories are asset allocation appropriateness, diversification, security selection, investment decision-making process, and tax efficiency. These categories are not mutually exclusive, due to the subjective nature of the task and the fact that most investment decisions have a wide range of effects and consequences. Read the rest of this entry »