How Does Daniel Dollinger Invest?

Introduction

If you look at a security, there is a lot of noise. Every day the security goes up and down, sometimes by a few cents and sometimes by many dollars. If you average out all those prices, you get an average value for that security. Over time that value will trend up or trend down based on the underlying worth of the security.

How I Invest in the United States Economy

I am a passive index investor. I try to invest in the United States economy as a whole, because I believe over time the country will keep growing economically. I’m invested in many indexes, for any particular asset class or industry can die, but the country will live on. Every industry and sector has its own curve, times when it does well and times it does badly. When you average all the curves, you get a trend line (there still is some fluctuation but very little). That trend line represents the United States economy.

How I Invest in the World Economy

If the account is large enough, I also invest in the world economy as a whole. I know the world’s economy will keep growing. I like investing in foreign indexes for it diversifies out my portfolio. While I believe the United States economy will keep growing in the long run, in the short term it can falter and I want to compensate for that. I don’t emphasize it because I have a greater familiarity with the legal and accounting standards of United States companies. Sometimes foreign companies act according to legal and accounting rules that I don’t understand. There are risks (political, economic, regulatory etc.) that I also don’t understand.

Why My Understanding is Important

I do my best to understand, for I want to provide my clients with that diversification, but ultimately I am trying to do the best job possible for my clients. I will not take unnecessary risks with other peoples’ money. I strongly believe that I do not have that right.

My Attempt to Minimize Transaction Costs

The reason foreign investment depends on the account size is that I am doing my best to minimize transaction costs for the client. I want there to be a large enough amount of money invested in each index, so when I make buys and sells, the benefit outweighs that cost.

Conclusion

I tell my clients that I invest their account into various pistons. Each piston (domestic and/or foreign) moves up and down at different times, but ultimately they are running the machine that is propelling my clients forward to a better future.


Fee Structure

Rate Assets Under Management
1.44% Below $125,000
1.00% Between $125,000 and $750,000
.85% Between $750,000 and $1,250,000
.80% Between $1,250,000 and $1,750,000
.75% Between $1,750,000 and $2,500,000
.70% Between $2,500,000 and $3,250,000
.65% Between $3,250,000 and $4,250,000
.60% Above $4,250,000

A single rate is applied to the entire account. So a person with a $750,000.01 account pays less than a person with a $750,000 account. I will waive personal tax return fees for accounts over $1 million. For accounts that are above $5,250,000, we’ll need to discuss a custom rate.


As I’m writing these to help my readers, I would be very appreciative of any input in regards to what I should write next. If you want me to write about a particular topic, please contact me. If you would like to submit a post to my blog, please contact me.

If anything that I mentioned above interests you, please consider downloading my free e-book. The book contains my thoughts on investment management and some information that I think everyone should know. You can also download it below.

E-Book Download

Questions for the comments

Did my explanation make sense? Do you agree or disagree with what I said?

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