« Back to Author Index

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 »

    Revised Guidance on Following the Model Shadow Stock Portfolio

    Restrict purchases to Shadow Stocks whose average daily dollar volume is at least 10 times the desired amount to be invested. Plus, see the new additions.

    January 2016 | Journal

  2. AAII Model Portfolios »

    Model Fund Portfolio: Missing the Pre-Election Bull

    The pre-election-year bull is nowhere to be seen, but none of the portfolio’s funds are violating the sell rules.

    November 2015 | Journal

  3. AAII Model Portfolios »

    The Model Shadow Stock Portfolio’s Long-Term Performance

    The power of compounded returns has led to the portfolio’s great long-term return. A new chart helps to show the relative impact on returns.

    October 2015 | Journal

  4. AAII Model Portfolios »

    Model Fund Portfolio: Diversification Offsets Weak Performers

    A big gain in First Trust US IPO (FPX) helped to offset the drag caused REITs and frontier markets being out-of-favor.

    August 2015 | Journal

  5. AAII Model Portfolios »

    Major Rule Change Made to the Model Shadow Stock Portfolio

    The maximum price-to-book ratio has been increased. Plus, three stocks were added and a fourth reinvested into.

    July 2015 | Journal

  6. AAII Model Portfolios »

    No Reason to Switch Funds in the Model Fund Portfolio

    Aston/Fairpointe continues to have one of the highest long-term returns, while none of the competitors to our funds or ETFs justify making a change.

    May 2015 | Journal

  7. AAII Model Portfolios »

    Model Shadow Stock Portfolio: Sell Rules Dictate a Change

    One stock was replaced after blowing through both the value and market-capitalization limits. Plus, insight into the portfolio’s performance.

    April 2015 | Journal

  8. AAII Model Portfolios »

    Dramatic Changes Help and Hurt the Model Fund Portfolio

    Upward volatility in REITs has been offset by oil-related declines in frontier markets. Both asset classes still look attractive on a long-term basis.

    March 2015 | Journal