Comments on: How often should you check your portfolio?

By: gg555

gg555 — Thu, 04 Feb 2010 02:42:34 +0000

I honestly like to watch the numbers go up and down. I check all the time. Even with the recent huge downturn in the market, I didn’t feel a compulsion to do anything. I’m also investing new funds regularly, as part of a monthly discipline, so I have to look at my account to do that. And anyway, when the market is going down it makes me feel good that I’m buying low. I find it more painful investing when the market is going up. But I don’t hesitate.

Perhaps I just have a very dispassionate relationship to the overall balance of my funds. I also started investing in 1999, only to experience two insane bubbles in the U.S. and an essentially lost decade. So although I believe intellectually in the longterm benefits, on an emotional level my expectations are really low.

By: JerryB

JerryB — Thu, 02 Jul 2009 14:31:53 +0000

I check my retirement accounts ( Fidelity and Vanguard) monthly for accuracy of deposits and to update my net worth.

By: Mark Wolfinger

Mark Wolfinger — Thu, 02 Jul 2009 14:03:23 +0000

I find it easy to ‘know’ that you won’t ‘do’ anything. But somehow, I’d want to be certain. I also have a fascination with numbers that would make me want to see.

I guess the bottom line is that you would not take any action, so what’s the point in looking. That shows remarkable self-control or perhaps disinterest. However, it does go with your title.

This is truly a case of ‘to each his/her own.’

Regards,

By: Mike

Mike — Thu, 02 Jul 2009 02:20:01 +0000

SJ: I do read Google News a couple times per week. Though:
a) I have it set not to show any business news, and
b) I’m becoming less and less convinced that there’s really that much value there regardless.

Mark: You raise a good point. Until looking at a piece of information, it can be difficult to determine whether it’s actionable.

I would, however, argue that it’s not impossible. For example, I know that I would do absolutely nothing with information regarding who won the last American Idol series.

So, how have I determined that twice per year is sufficient? Because I’ve been told by people more educated/better informed than myself (namely, William Bernstein, Rick Ferri, and Larry Swedroe) that there’s no reason to think that rebalancing, say, quarterly is likely to achieve better results over a given period than rebalancing annually.

Admittedly, it’s a bit of a cop-out. I haven’t personally done any studies to verify the accuracy of their statements. (Nor, frankly, would I even be clear on how to go about doing so.) That said, from what I’ve read by each of them, I believe that I have every reason to extend them my trust.

By: Mark Wolfinger

Mark Wolfinger — Thu, 02 Jul 2009 02:07:43 +0000

This is not a criticism, but I’m hoping it’s a discussion:

How do you know whether the information is actionable if you refuse to see what information is available? Is it good enough to just follow John Bogle?

Doing nothing is a decision. It is an action, and to me, you are taking that action in the blind.

If you digest the information and then decide to do nothing, that’s reasonable. But why would you assume you are going to take no action? Based on what? Your belief that once per year is sufficient?

By: SJ

SJ — Wed, 01 Jul 2009 17:51:58 +0000

I do disagree with your decision not to read the newspaper, watch tv or listen to radio.

Ignoring just how awesome such shows as Big Brother and Win a date w/ Tila Tequila… I would argue staying current in news is useful. At the very least daily show gives me laughs.

By: Rob Bennett

Rob Bennett — Wed, 01 Jul 2009 17:24:55 +0000

You hit it on the head when you say that “information that is not actionable is worthless,” Mike.

If we all looked at our portfolios only twice per year and took the time we saved by not following daily market events to come to a deeper understanding of how the stock market really works, we all would be better off.

This is Bogle’s most important insight, in my assessment.

Rob

By: Mike

Mike — Wed, 01 Jul 2009 16:47:00 +0000

Hi Paul. Good to have you back writing and commenting again.

You bring up a good point about checking for transaction mistakes. There’s no doubt about it–those things can happen.

By: Paul Williams @ Provident Planning

Paul Williams @ Provident Planning — Wed, 01 Jul 2009 15:35:56 +0000

The only reason I can think of to look at your account more often is to make sure all transactions are going through correctly. It’s much easier to get a mistake fixed early on rather than several months later.

But other than that, I completely agree with what you’ve said. And I really agree with your statement about newspapers, radio, and TV!!!

By: My Journey

My Journey — Wed, 01 Jul 2009 15:03:26 +0000

I rarely check my 401(k) usually on big swings, which I think you would agree is the worst time. That being said, I don’t touch the 401(k).

My trading portfolio (just a couple grand) I look OFTEN! VERY OFTEN!