Better Than All Weather Portfolio . . .



My Sunday Washington Post Business Section column is out. This morning, we take yet another at Tony Robbin’s All Weather Portfolio.

The print version had the headline Why the all-weather portfolio is a wash-out while online, it was Better Than All Weather Portfolio.

Rather than merely criticize Robbin’s 55% bond, 15% commodity portfolio, I offered up a variation of a classic 60/40:

All Century Portfolio
20 percent total U.S stock market
5 percent U.S. REITs
5 percent U.S. small cap value
15 percent Pacific equities
15 percent European equities
10 percent U.S. TIPs
10 percent U.S. high yield corp bonds
20 percent U.S. total bond market

And to add a little spice to the discussion, I challenge Robbin’s to a $100,000 bet:

I am willing to bet Tony Robbins that my Century portfolio will significantly outperform his all-weather portfolio over the next 20 years. Toward that I end, I propose that each of us puts $100,000 into our own portfolios. Set it with whatever automatic rebalancing you want — then leave it alone. On Jan. 1, 2035, whichever one is worth more is declared the winner. The loser then donates that original $100,000 investment to the charity of the winner’s choice . . .

Seems like easy money to me


Why the all-weather portfolio is a wash-out
Barry Ritholtz
Washington Post, December 7, 2014

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