Investing
This website was started during June 2001 in an attempt to document the progress that my investing partner, Doug Weimer and I made in our attempts to "Beat the Market".
There are essentially two schools of investing:
Active Investing:
The manager of the portfolio makes specific investments with the goal of outperforming an investment index.
It is reasonably well known that it is extremely difficult to beat the risk adjusted return of an appropriate index. In spite of that fact, many investors try, probably because we humans have been programmed to believe we can beat the odds, even though that belief fails the simplest test of logic imaginable. Relatively few of us succeed over a short run of ten or so years, and even fewer succeed over longer periods.
From June 2001 thru December 2010 our WEIMERandWIRTH Portfolio returned 27% per year while the Vanguard S&P 500 Mutual Index Fund returned 2.1% per year.
Write to HW-Newsletter@hotmail.com if you have questions or wish to subscribe.
For more go to History and Description.
Passive Investing:
The manager of the portfolio replicates the returns of that index as closely as possible.
Regardless of whether or not it's possible to beat the market over a long run of more than ten years, it's probably pretty safe to say that it can't be done without a considerable amount of luck.
I have included a page on asset allocation using index funds
because, in my opinion, this is a strategy that will outperform the
market on a risk adjusted basis over a long run of more than ten
years, and luck is not a factor.
For more go to Asset Allocation.
I have also included a section on US stock valuation levels and have explained how this information may be used to add value to a portfolio. A section on Gold has been included because it may be of general interest.
Disclosures:
1. The returns shown for WEIMERandWIRTH are returns that would have been realized if transactions had been executed on the first trading day after the recommendations were made to WEIMERandWIRTH subscribers.
2. The securities held in the WEIMERandWIRTH model portfolio may be purchased or sold by Henry Wirth and/or some or all of our information providers BEFORE the portfolio contents are disseminated to WEIMERandWIRTH subscribers.
3. Average Transaction Costs of approximately 0.5% are included in all WEIMERandWIRTH returns.
4. Henry Wirth is not a registered investment adviser nor is he a broker or dealer.
Disclaimer:
Henry Wirth, HenryWirth.com and any of our information providers, parents, members, subsidiaries, affiliates, service providers, licensors, officers, directors or employees shall NOT be liable for any direct, indirect, incidental, special or consequential damages arising out of, or relating to, or resulting from the use or the inability to use Henry Wirth's selections and websites, including but not limited to damages for loss of profits, use, data or other intangible damages.