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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 »

    Model Fund Portfolio: Replacing a Closed Fund

    Fidelity OTC (FOCPX) is being added to replace Yacktman Focused (YAFFX). Plus, Jim’s thoughts about closed mutual funds.

    March 2014 | Journal

  2. AAII Model Portfolios »

    Model Shadow Stock Portfolio: Purchase Guidelines and Rule Changes

    Guidelines regarding price action and news are discussed, as well as a higher market capitalization limit and the latest portfolio changes.

    January 2014 | Journal

  3. AAII Model Portfolios »

    Building an All-ETF Subset From the Model Fund Portfolio

    The Pure ETF Portfolio is an example of how a diversified portfolio can be constructed solely out of ETFs.

    November 2013 | Journal

  4. AAII Model Portfolios »

    The Model Shadow Stock Portfolio and Micro-Cap Stock Spreads

    Guidance for reducing the negative impact of spreads. Plus, one stock was sold and two were added to the portfolio.

    October 2013 | Journal

  5. AAII Model Portfolios »

    Frontier Markets Exposure Added to the Model Fund Portfolio

    The portfolio’s new addition targets pre-emerging economies and offers more potential upside than the fund it is replacing.

    August 2013 | Journal

  6. AAII Model Portfolios »

    Three Different Ways to Follow the Model Shadow Stock Portfolio

    The portfolio’s rules allow for variance in how it is followed. Plus, one new stock was added.

    July 2013 | Journal

  7. AAII Model Portfolios »

    A New Fund and Suggested Allocation for the Model Fund Portfolio

    CGM Realty Fund (CGMRX) is being replaced, and a new allocation is suggested for those preferring a more conservative portfolio.

    May 2013 | Journal

  8. AAII Model Portfolios »

    A Look at the Model Shadow Stock Portfolio’s True Risk

    Measured by the chance of a long-term loss, the Model Shadow Stock Portfolio is less risky than the S&P 500 index.

    April 2013 | Journal