How many brokerage firms are you using?

General Discussion on the Permanent Portfolio Strategy

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Smith1776
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Re: How many brokerage firms are you using?

Post by Smith1776 » Tue Sep 17, 2019 4:13 pm

Indeed I remember Swedroe remarking that filtering out the junk or "lottery ticket" stocks from a portfolio, particularly of small caps, greatly improved results. Removing these crappy securities even from total market indexes seemed to improve the portfolio across the board.

Interestingly, one way to filter out the junk from small caps is to simply tilt towards value.

As you all know, if I tilt towards value I'm getting low P/E, P/B, P/CF ratios etc. Having a low P/E necessitates having some earnings. Crappy securities tend to get filtered out when there's no cash flow or earnings (no p/e and p/cf at all). So there's actually a quality/profitability tilt that's built in.
V = E * (8.5 + 2G)
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Kbg
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Re: How many brokerage firms are you using?

Post by Kbg » Tue Sep 17, 2019 4:35 pm

IJS is better than IWN as well (IWN is the value R2K ETF)
boglerdude
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Re: How many brokerage firms are you using?

Post by boglerdude » Wed Sep 18, 2019 1:15 am

thats the idea, companies where market sentiment is bad but fundamentals are good

But now everyone's looking for that. I wonder how much Arnott and Swedroe make every year from our fees?
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KevinW
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Re: How many brokerage firms are you using?

Post by KevinW » Mon Sep 23, 2019 11:11 pm

I have two brokerages, my personal accounts are at Vanguard and my 401k is at Schwab. I plan on keeping most funds at Vanguard and a minority at either Schwab or Fidelity.
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vnatale
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Re: How many brokerage firms are you using?

Post by vnatale » Mon Oct 07, 2019 8:34 pm

Thanks for all the great responses to my initial question below.

I am still gathering information to map out my grand plan to go FULL Permanent Portfolio. As I stated below, I have already opened an account with Fidelity. But I will fund it at some time after I establish the FULL Permanent Portfolio.

One of the items on my plan is consolidating some of the many (seven!) retirement accounts I have with Vanguard. Six of them can be consolidated into two (one Traditional IRA and the other ROTH IRA). However, the remaining one of them served as an education for both the people I spoke to at Vanguard and my friend who is a many decades experienced CPA in Rhode Island. Massachusetts does not recognize SIMPLE IRAs. Therefore, I cannot consolidate that into anything because though its drawdowns WILL be taxable on the federal level there will be NO Massachusetts tax due on them since I never received any Massachusetts tax advantages when I made my contributions.

Vinny
vnatale wrote:
Tue Sep 10, 2019 7:53 pm
I am about to become a level 4 Permanent Portfolio investor.

The book advises you to have all your investments in at least two brokerages.

Presently I have all my investments with Vanguard. Last Friday I opened an account with Fidelity in anticipation of it taking half of my present Vanguard investments.

How many brokerages are you using:

1
2
More than 2

And, could you please identify which ones you are using and why?

Thanks

Vinny
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