Yearly Archive: 2012

Is the Permanent Portfolio “Best?”

I posted this as a response to a thread over at the Boglehead’s forum where someone asked the provocative question about the Permanent Portfolio being “best.” Well I’m pretty big on the portfolio (I co-authored a book about it), but I’m not going to say it’s “best”, I’ll simply list out the pros and cons: Pros: – It’s a real return allocation. – Diversification based on economic cycles and is future agnostic. – Diversifies against non-spreadsheet risks. Cons – Doesn’t...

American Association of Individual Investors Article on the Permanent Portfolio

The December 2012 AAII Journal featured an article written by Mike and me on the new Permanent Portfolio book: The Permanent Portfolio: Using Allocation to Build and Protect Wealth   Simple, safe and stable: These are the three tenets of the Permanent Portfolio, a strategy invented by the late Harry Browne to help investors grow and protect their life savings no matter what was going on in the markets. Over the last 40 years, the strategy has returned 9.5% compound...

Beware of Investors Bearing Charts

Since I’ve been venting about topics like Tapas, I may as well keep the ball rolling on another topic I really can’t stand: Charts. Specifically, investing charts. Even more specifically, investing charts going back decades that ignore history and make gross assumptions about the future. Here are the big problems with investing charts that I often see: The Problem of Induction This is partially the idea that what you see around you is bound to continue on into the future...