Everything Old is New Again

Reading old investment books is somewhat of a hobby of mine (I know probably need a better hobby).  Glancing up on my bookshelf there are titles most have never heard of such as Once in Golconda, The Zurich Axioms, and Supermoney.  I was flipping through another book new to me that I found when thinking about titles for my new book (coming in a week or so, promise!)  It was called Diversify and was published in 1989.

Anyways, I was surprised to see the author propose the “All-Weather Portfolio” that consisted of 30% stocks, 15% foreign stocks, 15% US bonds, 20% international bonds, 5% gold, and 15% T-bills.  That portfolio obviously has the same name as Ray Dalio’s fund which launched five years later in 1994.  I’m not suggesting Ray copied this book obviously, as it is a very common phrase, but I just thought it would be fun to compare Dalio’s recently suggested portfolio from Tony Robbin’s new book to this portfolio proposed over 25 years ago!

Below are the stats.  I named the Diversify portfolio ALLW2.  As you can see, they are near clones of each other.  That is a good thing in my mind, as a solid diversified portfolio should be very “average” in a sense.  But remember, if you’re only doing 5% real a year, fees are your greatest enemy.  But what do you spend most of your time on?  The asset allocation.




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