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"...diversification should refer primarily to asset classes (REITS, Bonds, Equities, MLPs, PM/Commodities) and only secondarily to different types of equities, for example, large, small, or international."
"avoid the one behavior certain to decimate portfolios—panic."
Utilize a investment approach that consists of "a passive core and active satellite combination."
"Recently Malloy’s firm started using the Research Affiliates Fundamental Index® (RAFI) strategy in its core portion (representing 50 percent–70 percent) of client portfolios. Founded in 2002 by Rob Arnott, RAFI favors the economy-centric approach of legendary investors Benjamin Graham and David Dodd. RAFI selects and weights stocks by non-price measures of firm size using four variables: sales, cash flow, dividends, and book value. This composite-fundamentals approach avoids the structural bias of any one variable."
Comments
A few points I came away with:
"...diversification should refer primarily to asset classes (REITS, Bonds, Equities, MLPs, PM/Commodities) and only secondarily to different types of equities, for example, large, small, or international."
"avoid the one behavior certain to decimate portfolios—panic."
Utilize a investment approach that consists of "a passive core and active satellite combination."
"Recently Malloy’s firm started using the Research Affiliates Fundamental Index® (RAFI) strategy in its core portion (representing 50 percent–70 percent) of client portfolios. Founded in 2002 by Rob Arnott, RAFI favors the economy-centric approach of legendary investors Benjamin Graham and David Dodd. RAFI selects and weights stocks by non-price measures of firm size using four variables: sales, cash flow, dividends, and book value. This composite-fundamentals approach avoids the structural bias of any one variable."
A few things I found related to RAFI:
http://www.indexuniverse.com/docs/Fundamental Indexation_Arnott.pdf
http://invescopowershares.com/pdf/P-FUNDAMENTALS-IVG-1.pdf
http://www.bogleheads.org/forum/viewtopic.php?t=71750