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James Cloonan

author Image James B. Cloonan is founder and chairman of AAII. He is author of the book "Investing at Level3: Higher Returns With Minimal Risk for the Long-Term Individual Investor".

Articles by this Author


James B. Cloonan earned his MBA from the University of Chicago and his B.A. and Ph.D. from Northwestern University. After teaching for several years in 1974 he helped found and served as CEO of Heinold Securities, a brokerage firm specializing in options. After selling his interest in that firm, he returned to teaching and began the preliminary work leading to the founding of the American Association of Individual Investors in 1978 and is currently chairman of AAII.

Cloonan is the author of books and articles on investing and writes the Model Portfolios column for the AAII Journal. He created and manages the Model Shadow Stock Portfolio, which has realized an annualized return of over 15% for the past 23 years.

Cloonan has served on several industry and regulatory panels, including the Consumer Advisory Council of the National Futures Association, the Advisory Panel on Securities Markets and Information Technology of the Congressional Office of Technology Assessment, the NASD Special Committee on the Quality of Markets, the New York Stock Exchange Panel on Market Volatility and Investor Confidence, the Chicago Mercantile Exchange Financial Instruments Advisors Committee, the New York Stock Exchange Individual Investors Advisory Committee, and The Consumer Affairs Advisory Committee of the Securities and Exchange Commission.

He lives with his wife Edie in Chicago.

Articles by this Author

  1. AAII Model Portfolios »

    Two New Stocks Added to the Model Shadow Stock Portfolio

    The latest additions are discussed, along with the portfolio’s 2014 performance and expectations for 2015.

    January 2015 | Journal

  2. AAII Model Portfolios »

    Replacing a Mutual Fund With an ETF in the Model Fund Portfolio

    One mutual fund has been removed because of its expense and performance and is being replaced with an IPO-focused ETF.

    November 2014 | Journal

  3. AAII Model Portfolios »

    Maintaining Model Shadow Stock Portfolio Purchase Rules

    Though no new non-Chinese stocks are qualifying, there is not enough cash in the portfolio to justify looser purchase rules.

    October 2014 | Journal

  4. AAII Model Portfolios »

    Model Fund Portfolio: Adjust Risk Based on Personal Factors

    Performance figures for the Conservative Portfolio are being dropped because the proper risk exposure is unique to each investor.

    August 2014 | Journal

  5. AAII Model Portfolios »

    A New Constraint Added to the Model Shadow Stock Portfolio Rules

    A rule eliminating candidates with negative earnings estimates has been formalized. Plus, see the latest transactions.

    July 2014 | Journal

  6. AAII Model Portfolios »

    REITs and Frontier Markets Drive Model Fund Portfolio Higher

    Good first-quarter returns by the REIT and frontier markets funds helped the Model Fund Portfolio beat the S&P 500 on a year-to-date basis.

    May 2014 | Journal

  7. AAII Model Portfolios »

    Model Shadow Stock Portfolio Rules Amended and Clarified

    The valuation and market capitalization sell rules have been amended. Plus, the maximum price to pay for new stocks is now listed.

    April 2014 | Journal