Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Simple Wins All the Time:Perhaps Only Most of the Time

edited March 2019 in The Bullpen
Hi Guys,

Investing decisions can be hard or easy, complex or simple. I vote for easy and simple almost all the time. Simple portfolios, simple but oversimplified does represent a real danger, have been recommended for many decades by some very impressive and renown market wizards. They work!

Here is a Link to one of the most successful portfolios practiced by David Swenson as reported by Adham Sbeih:

Swenson recommends 6 basic asset classes. His suggested allocation looks like this:

Asset Class Allocation
US Stock Market 30%
REIT (Real Estate Investment Trusts) 20%
Intl Developed 15%
Emerging 5%
TIPS (Treasury Inflation Protected) 15%
Intermediate Term Treasury 15%

Not the most simple portfolio, but not very complex either. It is an example a solid winning compromise. I love these solutions. Copying this portfolio might not be too bad a long haul asset allocation. The data over several timeframes suggests it’s a winner. It closely follows the 60/40 stock/bond mix.

Best Regards
Sign In or Register to comment.