Harry Browne Portfolio

Fail Safe Investing

Harry Browne Portfolio.

Asset allocation is very important in growing your wealth , the correct mixture of assets provide a bullet proof during rough times.  There are several asset allocation are available Buffet allocation , Ivy allocation, 60/40, 40/60, Seven twelve , Faber etc.

There is only one stands out in backtesting which is by Harry Browne Portfolio. The details of this investing is provided in detail in book Fail-Safe Investing: Lifelong Financial Security in 30 Minutes

The portfolio is super simple and believed in

  • Stocks for Prosperity
  • Bonds for Deflation
  • Gold for Inflation
  • Cash for Recession.

The portfolio is  equal allocation of

  • 25% stocks,
  • 25% Bonds,
  • 25% Gold ,
  • 25% Cash.

 

Backtest  from 1990 , this portfolio is amazingly performed very well in recession , market crash etc . The worst year it lost only 3% , average annualized returns is 6.5% per year.

 

Source : https://www.portfoliovisualizer.com

The same portfolio can be constructed using the ETF – Exchange traded Fund

  • 25% – VTI – Vanguard Total Stock Market ETF
  • 25% -VGLT – Vanguard Long Term Treasury
  • 25% – GLD – SPDR Gold Trust
  • 25% – Cash in Savings account / or Money Market Fund

 

The next nearest another Portfolio is is Ray Dalio portfolio  , this allocation plan is discussed in detail in Tony Robbins MONEY Master the Game: 7 Simple Steps to Financial Freedom book as All weather fund.

The all weather fund allocation is  

  • 40% long term bonds
  • 15% short term bonds
  • 30% stocks
  • 7.5% gold
  • 7.5% commodities

What you think of your asset allocation plan ? Share your thoughts !!!

 

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