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Effective Investing: How to minimize fees and maximize potential return

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We coined the term "Effective Investing" to reflect a style of investing that does several things. First, it minimizes fees and costs. Your money should go toward your future, not to a broker or mutual fund company. There are only two ways to accomplish this, one in stock investing and the other in bond investing. Your money should be safe and effective investing means being able to sleep at night.










This means managing and minimizingrisk. There are a limited number of ways to accomplish this, too. Risk is a feature of investing. It is how you get to return. Still, you can rationally minimize risk by taking a few constructive steps.  In the bond or fixed income world, investing in US Government securities is the only way to accomplish this.  In the stock market, the strategy is the polar opposite and can be summarized as "don't put all of your eggs in one basket," in fact, put them in the biggest basket you can find. This means investing in an Index Fund compris…

Diversity Index Portfolio Outperforms S and P 500

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Creative Investment Research, Inc. announced today that it's Diversity Index Portfolio returned 35.13% from April 19, 2011 to March 30, 2013. The Diversity Index is an investment portfolio containing stocks of the largest companies in the U.S. These companies have been selected because they have outstanding investment characteristics and are top performers with respect to four key measures of inclusion and diversity: Human capital, CEO commitment, corporate communications, and supplier diversity.

By comparison, the S and P 500, or the Standard and Poor's 500, returned 18.14% over the same time period. According to Wikipedia, "The S and P 500 is a stock market index based on the market capitalizations of 500 leading companies publicly traded in the U.S. stock market, as determined by Standard and Poor's. It is one of the most commonly followed equity indices and many consider it the best representation of the market as well as a bellwether for the U.S. economy."

The 40 Best Books on Social Investing

The 40 Best Books on Social Investing

Compiled by Frank Hung, Jui-Kai Li, Interns. Winter, 2010. An updated listing of some of the best books on socially responsible investing.

SEC issues investor warning

According to the Chicago Sun Times, "Exchange-traded funds that leverage their holdings could lead to outsized losses, the Securities and Exchange Commission said. It said brokers and financial advisers should warn people away from them unless they plan to hold them for just a day. The problem with leveraged ETFs comes down to the magic and mystery of compounded returns. If you leave your money in a leveraged ETF over time, your return can differ drastically from the fund's stated goal, especially in volatile markets. "

GS Sustain Focus List

On June 22, 2007, Goldman Sachs launched the GS Sustain Focus List, “companies from established industries, which have been selected by incorporating our proprietary Environmental, Social and Governance (ESG) framework into long-run industry drivers and returns-based analysis and valuation in order to pinpoint structural improvement and sustainable competitive positioning.” The list of stocks is "aimed at long term long only performance with low turnover.." The creation of the focus list and the required methodology suggest that Goldman, like other firms, has come to see the value of incorporating a “socially responsible” framework into traditional investment analysis. While we applaud Goldman's incorporation of the ten principles of the UN Global Compact into an investment analysis framework and the firms’ tacit recognition of “socially responsible” investing, we feel the firm is ethically and ethnically challenged, and that these factors may negatively influence both t…

This Week's events and news

Social Investments Forum will be held in Vladivostok

According to the Vladivostok Times, "The goal of the Forum is to promote the idea of social investments through creation of partnerships among local/regional authorities, businesses and non-commercial organizations (NGOs) for successful Territory"s socio-economic development. The New Eurasia Foundation Russian Far East Affiliate Office, in partnership with the Primorsky Territory Administration will hold SOCIAL INVESTMENTS FORUM IN THE RUSSIAN FAR EAST on July 27, 2007 in the framework of the first Pacific Economic Congress "Russia and Asia-Pacific - from cooperation to integration."
St. John’s Endowment Investments Outperform Those of a Majority of Higher Education InstitutionAccording to St. John's University, "A recently released NACUBO study indicates that St. John’s surpassed 90 percent of 700-plus colleges and universities in average annual rate of return on investments in the three-year period end…