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Pi Day: 3.141592653589793238462643383279502…

FYI: The famous mathematical ratio, estimated to more than 22 trillion digits (and counting), is the perfect symbol for our species’ long effort to tame infinity.
Regards,
Ted
https://www.nytimes.com/2019/03/14/science/pi-math-geometry-infinity.html

Comments

  • Hi Guys,

    Pi is perfectly defined as the ratio of the circumference of a circle divided by its diameter. Once that definition is evaluated, it becomes only approximated by a series of numbers that are infinitely long. For example:

    3.14159 26535 89793 23846 26433 83279 50288 41971 69399 37510 58209 74944 59230 78164 06286 20899 86280 34825 34211 7067

    This series is very close but only an approximate evaluation of Pi. In most cases being close is good enough, especially when investing.

    Best Wishes
  • edited March 15
    Well, approximation in this case is not really the usual meaning:

    https://en.wikipedia.org/wiki/Approximations_of_π
  • There must be some confusion here. Last Saturday was Pie day. We got cherry, and it was great. And I did in fact divide the circumference right through the diameter, before dividing it yet again into smaller pieces. All gone now.

  • Speaking of pi ... this is a really nifty ethereal song/track based on pi's mathematics. Lovely ambient music!

    https://motherboard.vice.com/en_us/article/vbwn7d/musician-creates-a-million-hour-song-based-on-the-number-pi
  • I never met a pie I didn't like !
    Derf
  • edited March 15
    Old_Joe said:

    Last Saturday was Pie day. We got cherry, and it was great. And I did in fact divide the circumference right through the diameter, before dividing it yet again into smaller pieces. All gone now.

    I never eat pie. Complete waste of calories. But happen to think pie charts are beautiful. I’ve spent many enjoyable hours drawing up various investment models on them. I’m grateful, therefore, that pie was invented.

    image

    Source: https://www.biz.uiowa.edu/wmc/portfolios


    Disclaimers:

    - The above illustration is offered only as one example of an asset allocation pie chart. This is strictly for illustration purposes. It is not intended to be nor should it be construed to constitute investment advice.

    - Investing is a highly individual matter. Age, other sources of income, net worth, years to (after) retirement, health, financial experience, fees, life expectancy, individual needs and tolerance for risk are among the factors that need to be considered. Consult your financial advisor before investing money.
  • MJG
    edited March 15
    Hi Hank,

    What expert? What was his criteria to determine his asset allocation? I would guesstimate that an effective allocation is circumstance and goal specific. One size does NOT fit all. The impact of various asset allocations can be easily explored on Portfolio Visualizer. Once again, here is the general Link:

    https://www.portfoliovisualizer.com

    After getting to the general Link you must go down and click on the backtest asset allocation option.

    Sometimes, rather large changes do not significantly impact projected end wealth. That’s good news since projecting future returns is so uncertain. Good luck.

    Best Wishes

  • your portfoliovisualizer link goes nowhere.
  • edited March 15
    MJG said:

    Hi Hank, What expert? What was his criteria to determine his asset allocation? I would guesstimate that an effective allocation is circumstance and goal specific. One size does NOT fit all. The impact of various asset allocations can be easily explored on Portfolio Visualizer. Once again, here is the Link:

    Hi MJG, Hope you are well.

    I was remiss in not pointing out that the pie chart was primarily offered up as an illustration of what one hypothetical investment related pie chart might look like. Nothing more. It’s not how I invest in retirement (though some similarities) nor was it intended to be a recommendation to others. I’ve gone back and provided an appropriate link to the source. I’ve also added what I hope is sufficient disclosure to the effect that it is not intended as investment advice.

    The chart is from work done at the University of Iowa. The authors are given as John Spitzer, Ph.D. and Todd Houge, Ph.D., CFA). I can’t vouch for their expertise in the area. However, the pie chart has certain appealing attributes:

    (1) It appears near perfectly round.

    (2) It incorporates distinct contrasting colors to help one visualize the different asset classes.

    (3) It contains clear easy to read labels inside the different slices of the pie.

    (4) It contains proportional slices of a pie which roughly resemble in proportion the numerical percentages devoted to each asset.


    Sorry I didn’t make that clearer. I’ve gone back and added the appropriate disclaimers. However, if others want to discuss allocation models suitable for different types of retirees that would make for a useful thread. I’d suggest it be kept separate from this one however. Indeed, @Old_Skeet does a lot of work along those lines here on a fairly regular basis.
  • Hi Gary,

    You are spot on target.. I corrected my Link. It requires a second Click to get to the specific tool that I referenced. Sorry about my lazy post. Thank you for the alert, and thank you for reading my submittal.

    Best Wishes

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