Two things for you to read
First, the article by Clay Dillow I mentioned in the previous show.
Second, Cramer’s feature article in New York magazine.
I’m working on show 65 to be released next Tuesday, June 5th. See you then.
Wed, May 30 2007 » Announcements » Comments Off on Two things for you to read
MMM-064: REHAB
Cramerholics Anonymous unite! The IFA Portfolio Simulator. Hulbert reports US stocks may go parabolic. Is MMM worth $3 Million? I WANT A TICKET TO DIEHARDS VI! Fidelity’s “better than index” index funds. Much much more.
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Buy Duff Meats! Use checkout code “MadMoney” to get 10% off your order of $100 or more… and free shipping!
CBS buys Wallstrip for $5 Million. How much is the Mad Money Machine worth? Answer: $3 Million!
The TOOL will help you simulate your portfolio.
Scott is now a member of Cramerholics Anonymous.
The iTunes Store UPDATED! No more conspiracy theories. I like the name Mad Money Machine.
Mark Hulbert reports that the US stock market may still go parabolic.
We play Russian Guru Roulette. Nobody can pick stocks.
TrueOhioPlaya gets his answer at diehards.org/forums
Will the new Fox Business Channel have a Mad Money clone show?
I was interviewed twice in two hours last week: Clay Dillow for Medill News Service and Andrew Horowitz from the Disciplined Investor show.
I answer the question that was asked on the Index Investing show: How much do I need to save to get $2 Million in 20 years?
I WANT TO ATTEND DIEHARDS VI… CAN YOU GET ME A TICKET???
A review of Kiplinger’s best mutual funds.
Fidelity’s “Better than index” index funds.
My Nike + iPod running gadgets.
Do you want to join Cramerholics Anonymous too? Get a copy of the Big Book that you need.
Download the show directly MMM-064.mp3
Music from music.podshow.com:
Beyond – Klavar
Alta Plaza – XRAY Dogs
Redemption – Kevin Reeves and Ian Baird
Sweet Redemption feat. Sam Brown – Todd Sharpville
I Want a Better Life DR Remix – The Shakes
Tue, May 22 2007 » Podcasts » 4 Comments
MMM-063: DO IT ANYWAY
I ENCOURAGE you to Download this show thru iTunes!
But, if you just can’t possibly deal with that then go ahead and
Play the new show right now
The Mad Money Machine is proud to be sponsored by Index Funds Advisors at ifa.com.
Please Digg Me! Please? This moves the MMM up in the Digg list of business podcasts.
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Email me: feedback at Mad Money Machine dot com, or comment, or Call me on the Mad Money Machine voicemail line at 206-734-4763
Buy Duff Meats!
Have you ever had something that you really needed to get done but just didn’t feel like doing it?
CBS buys Wallstrip for $5 Million. How much is the Mad Money Machine worth?
Callers, callers, callers.
Abusive pricing stories.
If it “takes money to make money” how do you get money in the first place?
The OFFICIAL Step 5: Manager Pickers.
The TOOL is a great stock charter.
Download the show directly MMM-063.mp3
Music from music.podshow.com:
Alta Plaza – XRAY Dogs
Motor – Midiots
Rumble – Jeff Hightower
Wed, May 16 2007 » Podcasts » Comments Off on MMM-063: DO IT ANYWAY
MMM-062: Not Getting Ripped Off
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The Mad Money Machine is proud to be sponsored by Index Funds Advisors at ifa.com.
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More show notes coming soon, please check back!
Our Guru, Jason Calacanis, on Abusive Pricing. Do you have an abusive pricing story? CALL ME!
Garen wonders about rising long term capital gains taxes.
The TOOL helps compare portfolio performances.
Sizing up the competition: the Index Investing Show with Ron Delegge.
Download the show directly MMM-062.mp3
Music from music.podshow.com:
Alta Plaza – XRAY Dogs
Tue, May 8 2007 » Podcasts » Comments Off on MMM-062: Not Getting Ripped Off
MMM-061: SWR – Safe Withdrawal Rate
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But, if you just can’t possibly deal with that then go ahead and
Play the new show right now
The Mad Money Machine is proud to be sponsored by Index Funds Advisors at ifa.com.
Please Digg Me! Please? This moves the MMM up in the Digg list of business podcasts.
Also, sign up for the Mad Money Machine email newsletter.
Email me: feedback at Mad Money Machine dot com, or comment, or Call me on the Mad Money Machine voicemail line at 206-734-4763
Robert Kiyosaki does not understand the big picture.
Ways to save money: For Christmas, buy her tickets to a play on Valentine’s Day. Get married on her birthday.
Chill down spine moment: when your actively managed mutual fund turns over all of its stocks.
In memory of Buddy.
Buy Duff Meats!
Safe withdrawal rate resources:
http://www.fidelityresearchinstitute.com/pdf/Beyond_Conventional_Wisdom.pdf
http://www.fpanet.org/journal/articles/1996_Issues/upload/15388_1.pdf
http://www.efficientfrontier.com/ef/998/hell.htm
http://bobsfiles.home.att.net/trinity.htm
http://bobsfiles.home.att.net/withdrawlinks.html
http://www.bylo.org/news/wsj17nov04jc.html
Also have a look at zunna.com and firecalc.com
Download the show directly MMM-061.mp3
Music from music.podshow.com:
Alta Plaza – XRAY Dogs
Wed, May 2 2007 » Podcasts » 1 Comment
Spring is Here! Show 61 delayed
From winter straight into summer we have finally arrived at spring here in Northern Virginia. That means I am spending a little more time enjoying the outdoors and slightly less time working on things like, uh, podcasts. Show 61 will be out when it is good and ready. Keep checking.
But more importantly, I am working on a special feature for show 61. It is all about “SWR” which some refer to as Safe Withdrawal Rate and others as Sustainable Withdrawal Rate. But either way, it is all about how much you can take out of your investments annually and still keep enough in your account for all the other years you need to take out money too. When you consider factors such as the stocks vs. bonds mix, the rate of return on stocks, the inflation rate, the maximum drawdown, starting time and your longevity, etc, the SWR turns out to be much more complicated than simply saying “4%.”
For folks approaching or in retirement, the SWR is a critical piece of info to know in order to not run out of money and end up eating dry cat food (see below).
Even if you are nowhere near retirement, contemplating your SWR is a worthwhile exercise because, as Steven Covey of the 7 Habits of Highly Effective People fame puts it, we should “begin with the end in mind”. Young folks will understand the importance of saving and investing in concrete terms when they can figure their SWR. It can be a shocking exercise.
And finally, I will be taking our cat to the vet today to be, how shall I say, retired from his life on this earth. He has been with us for almost 15 years and in recent months has gone from being overweight to underweight; from being well trained in the scatological arts to being poorly behaved; from being frisky and athletic to being lethargic and crippled. He has been a good companion for us and we will miss him.
The Boyer Cat three years ago.
The Boyer Cat today
Tue, May 1 2007 » Announcements » 3 Comments
MMM-060: Turning It Around
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The Mad Money Machine is proud to be sponsored by Index Funds Advisors at ifa.com.
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We completely skipped spring and went straight into summer here in Northern Virginia.
Here are the Year to Date returns for a Do-It-Yourself portfolio as of 25 April 2007
| Style | Name | Ticker | Total_Value | % Gain |
| LC | VANGUARD LG-CAP ETF | VV | $ 12,751.55 | 6.3% |
| LCV | VANGUARD VALUE ETF | VTV | $ 12,706.09 | 5.9% |
| SCV | VANGUARD SM-CAP VAL | VBR | $ 21,221.33 | 6.1% |
| mC | ISHARES RUSSELL MICR | IWC | $ 20,791.23 | 4.0% |
| REIT | VANGUARD SF REIT ETF | VNQ | $ 5,270.38 | 5.4% |
| IV | ISHARES MSCI VLU IDX | EFV | $ 6,471.19 | 7.9% |
| IS | WISDOMTREE INTL SC | DLS | $ 13,685.15 | 14.0% |
| EM | VANGRD EMRG MKT ETF | VWO | $ 14,274.97 | 9.8% |
| TOTAL as of 25 April 2007 close | $107,171.89 | 7.2% |
Cramer’s Stocks of the Year as of 25 April 2007:
| Name | Ticker | Shrs | Buy_Price | LatestPrice | % Gain | Total_Value |
| Value (buy 1/4/07) | ||||||
| ALTRIA GROUP | MO | 127.13 | $ 87.40 | $ 69.89 | 7.0% | $ 8,885.07 |
| Kraft Foods Inc. | KFT | 89.60 | $ – | $ 33.51 | $ 3,002.37 | |
| Halliburton Company | HAL | 371.98 | $ 29.87 | $ 32.00 | 7.1% | $ 11,903.43 |
| Goldman Sachs Group, Inc. | GS | 55.49 | $ 199.57 | $ 226.00 | 12.9% | $ 12,541.76 |
| Growth (buy 1/5/07) | ||||||
| Apple Inc. | AAPL | 129.55 | $ 85.77 | $ 99.58 | 16.1% | $ 12,900.13 |
| Cisco Systems, Inc. | CSCO | 390.69 | $ 28.44 | $ 27.14 | -4.6% | $ 10,603.22 |
| NYSE EURONEXT | NYX | 114.48 | $ 97.06 | $ 86.11 | -11.3% | $ 9,857.59 |
| Speculation (buy 1/8/07) | ||||||
| Savient Pharmaceuticals, Inc. | SVNT | 892.46 | $ 12.45 | $ 11.47 | -7.9% | $ 10,236.50 |
| Rite Aid Corporation | RAD | 1,919.02 | $ 5.79 | $ 6.40 | 10.5% | $ 12,281.71 |
| Level 3 Communications, Inc. | LVLT | 1,797.91 | $ 6.18 | $ 5.83 | -5.7% | $ 10,481.84 |
| TOTAL | 2.6% | $ 102,693.64 |
Click here to buy Keane’s “Crystal Ball” from iTunes:
I’m still thinking of changing the name of this show. Stay vigilant.
Sound quality stinks? Turn the microphone around to the correct side!
NevSta’s strategy appears to be to short-sell companies just after their pop in earnings annoucements. He says that only about 1 in 5 are actually shortable in the real world.
Top Dog II shorts stocks just before their split in the VSE game…. doubling his money. And no, it does not work that way in the real world.
Here’s the link to the Periodic Table of Investment Returns
Eugene Fama was named as the third recipient of the Fred Arditti award by CME.
Our Guru says sometimes it is OK to sell your underperforming actively managed mutual fund, pay the long term capital gains taxes, and get into a broadly-diversified portfolio of index funds.
We check in on the Mad Money Machine Match Play Golf Classic.
Our Tool this week is more advanced. It helps you figure out how you’ve REALLY done.
I’m thinking of writing some visualization software to help analyze portfolios. More later…
Download the show directly MMM-060.mp3
Music from music.podshow.com:
Alta Plaza – XRAY Dogs
NEW! Through My Spine – Angel Vivaldi
Metal Start – Intelect
The Answer – Eric Vardeman
Money – Theory in Motion
Nuclearstrumental by Jungli – DJ COA
Tue, April 24 2007 » Podcasts » Comments Off on MMM-060: Turning It Around
How are those stocks of the year doing?
Cramer’s stocks of the year aren’t doing all that well so far. Eight months left to go.
A portfolio of his nine picks (now ten stocks with the divestiture of Kraft from Altria) is up only 2.4% while the IFA Indexfolio(tm) 100 is up 8.16%.
| Name | Ticker | Fee | Shrs | Buy_Price | LatestPrice | % Gain | Total_Value |
| Value | |||||||
| ALTRIA GROUP | MO | $8 | 127.13 | $ 87.40 | $ 69.75 | 6.5% | $ 8,867.28 |
| Kraft Foods Inc. | KFT | 89.60 | $ – | $ 33.16 | $ 2,971.01 | ||
| Halliburton Company | HAL | $8 | 371.98 | $ 29.87 | $ 31.68 | 6.1% | $ 11,784.40 |
| Goldman Sachs Group, Inc. | GS | $8 | 55.49 | $ 199.57 | $ 222.60 | 11.2% | $ 12,353.08 |
| Growth | |||||||
| Apple Inc. | AAPL | $8 | 129.55 | $ 85.77 | $ 93.09 | 8.5% | $ 12,059.38 |
| Cisco Systems, Inc. | CSCO | $8 | 390.69 | $ 28.44 | $ 26.62 | -6.4% | $ 10,400.10 |
| NYSE EURONEXT | NYX | $8 | 114.48 | $ 97.06 | $ 87.59 | -9.8% | $ 10,027.02 |
| Speculation | |||||||
| Savient Pharmaceuticals, Inc. | SVNT | $8 | 892.46 | $ 12.45 | $ 12.04 | -3.3% | $ 10,745.20 |
| Rite Aid Corporation | RAD | $8 | 1,919.02 | $ 5.79 | $ 6.40 | 10.5% | $ 12,281.71 |
| Level 3 Communications, Inc. | LVLT | $8 | 1,797.91 | $ 6.18 | $ 6.10 | -1.3% | $ 10,967.28 |
| $ 72.00 | 2.4% | $ 102,456.46 |
I assume a portfolio equal-weighted with each security. Starting with $100,000, this means $11,111.11 invested in each stock.The prices paid for these stocks were the opening prices on the day following his mention of them on his Mad Money TV show. Value stocks were bought Jan 4, Growth stocks Jan 5, and Speculation stocks Jan 8th. All prices as of mid-day Monday April 23rd and according to Yahoo! Finance.
Mon, April 23 2007 » Announcements » 7 Comments
MMM-059: Crystal Ball
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The Mad Money Machine is proud to be sponsored by Index Funds Advisors at ifa.com. I’m going to help you go through each of the 12 Steps for Active Investors with snippets of the author Mark Hebner’s own podcast.
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Get out your cell phone and type in 206-734-4763, add it to your contacts, make a call.
Email me: feedback at Mad Money Machine dot com, or comment, or Call me on the Mad Money Machine voicemail line at 206-734-4763
Should Warren Buffet invest in the Vanguard 2010 Target Retirement Fund? Not if we interpret the five dimensions of Risk Capacity properly.
iTunes still isn’t updating my feed. Hmmmmmm….. Unsubscribe and Subscribe for now…
I’m thinking about changing the name of my show and also changing the feed. Will you come with me if I change it? What should I call the show? I need a domain name also. I kinda like “The Boring Investing Show” but “The Paul Douglas Boyer Show” lets me talk about a lot more than just investing. Call me.
Do you like popcorn with Tabasco Sauce, salt, and butter?
Bogle, Bogle, Bogle interviewed on podcasts.
As an investor, are you a do-it-yourselfer or do you use professional help?
For the latter, check out ifa.com. As to the former, check them out anyway and here are some alternatives to DFA funds using Vanguard or other:
| Style | Mutual Funds | ETFs |
| Large Cap | VFINX | VV |
| Large Cap Value | VIVAX | VTV |
| Small Cap Value | VISVX | RZV (as Tom notes below, VBR may be a better choice here) |
| Micro Cap | BRSIX | IWC |
| REIT | VGSIX | VNQ |
| International Value | VTRIX | EFV |
| International Small | VINEX | DLS |
| Emerging Market | VEIEX | VWO |
Note that VINEX is an actively-managed fund and is closed to new investors. So look at DLS. Also, these aren’t necessarily best for taxable accounts, especially the REIT or dividend paying funds.
Benchmark your results against one of IFA portfolios. Have you beat the indexes yourself? If not, why are you doing it yourself?
Mark Hebner talks about Step 4: Time Pickers. Did you realize that if you took away the 4 best days of the year in the market that you’d lose 90% of the returns for that year? Let’s see your Crystal Ball figure that one out.
Crystal Ball – Styx
Our Guru talks about how we make up stories to explain cause and effect in the markets. He stole my idea about using a sand pile as a metaphor for stock price movements (just kidding). Also, for some hard core reading regarding Power Laws… check this out.
I review the Portfolio Smackdown game.
Download the show directly MMM-059.mp3
Music from music.podshow.com
Alta Plaza – XRAY Dogs
Beach Town in the Off Season – The Hesh Inc
Arrival of the Fittest – Tara
Scorpio by Sean Mooney – Tara
The Pop Culture – DJ Top Shelf
Runaway Train – Under Feather
Tue, April 17 2007 » Podcasts » 4 Comments
Bogle, Bogle, Bogle… interviewed on podcasts
Here are three podcasts on which John Bogle was recently interviewed.
The most extensive interview, lasting roughly an hour, was the April 9th interview on EconTalk. Some show notes are posted at the website.
Next up is The Index Investing Show‘s April 15th podcast release. Or here.
And finally, there is The Investing Revolution from March 23rd. Note that their most recent interview was with Eugene Fama. But, sadly, the interview cuts off after only a couple of minutes.
If you are a big follower of John Bogle or have read one or more of his books you may not learn much new from these interviews, but it is still fun to hear some Common Sense Investing from the master’s voice.
Also check out the March 23rd edition of Consuelo Mack WealthTrack.
Then there’s always his own blog.
Mon, April 16 2007 » Announcements » 1 Comment
Mac iTunes users: Trouble Downloading?
I’ve gotten a few emails from Mac iTunes users who say that the Mad Money Machine podcasts are not being updated for them. One solution seems to be to unsubscribe and then Subscribe to the feed. Let me know if there are others.
Not sure what is going on with the MMM feed at iTunes. It works everywhere else. Conspiracy?
Mon, April 16 2007 » Announcements » 1 Comment
Subscribe to the Podcast in iTunes