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Top Secret Portfolio Recipes (Asset Allocation)

Ok, some of these aren’t a secret. This page could also be called as “Don’t buy a book that makes you read 200 pages of boring shit just to get an allocation recommendation.” First and foremost, a lot of these are absolute garbage. The reason they’re being posted is so that more people will realize that books and blogs aren’t going to give you a magic bullet for allocation even if they cost an arm and a leg. Not everything you find on this page is hidden in a book, but for the sake of simplicity we’re just going to stuff it all into one page. Realize also, that a few of these have specific rules for entry and exit points which increase the risk adjusted returns.

7Twelve Portfolio – Craig Israelsen
(from 7Twelve: A Diversified Investment Portfolio with a plan)

  • 8.3% Domestic Large Cap Blend
  • 8.3% Domestic Mid Cap Blend
  • 8.3% Domestic Small Cap Blend
  • 8.3% World Total Stock Market
  • 8.3% Emerging Market Stocks
  • 25% Intermediate Term Bonds
  • 8.3% T-bills/Cash
  • 16.6% Commodities
  • 8.3% REITs

All-Weather Portfolio – Tony Robbins
(from Money: Master the Game)

  • 30% Domestic Total Stock Market
  • 40% Long Term
  • 15% Intermediate Term
  • 7.5% Commodities
  • 7.5% Gold

 All-Century Portfolio – Barry Ritholtz
(Ritholtz’s rebuttal to Tony Robbins)

  • 20 % total US stock market
  • 5 % REITs
  • 5 % Domestic small cap value
  • 15 % Pacific equities
  • 15 % European equities
  • 10 % TIPS
  • 10 % U.S. high yield corp bonds
  • 20 % U.S. total bond market

Black Swan Portfolio – Larry Swedroe
(from Reducing the Risk of Black Swans)

  • 15% Domestic Small Caps
  • 7.5% World Small Cap Value
  • 7.5% Emerging Markets
  • 70% Intermediate Term Bonds

Classic 60/40 – Jack Bogle
(The most commonly recommended stock/bond mix)

  • 60% Total US Stock Market
  • 40% Bonds (either Total Bond Market or Intermediate Term)

Coffeehouse Portfolio – Bill Schultheis
(from The Coffeehouse Investor)

  • 10% Domestic Large Cap Blend
  • 10% Domestic Large Cap Value
  • 10% Domestic Small Cap Blend
  • 10% Domestic Small Cap Value
  • 10% World Stock Market (ex-US)
  • 40% Intermediate Term Bonds
  • 10% REITs

Core Four – Rick Ferri
(from All About Asset Allocation)

  • 48% Domestic Total Stock Market
  • 24% World Total Stock Market
  • 20% Intermediate Term Bonds
  • 8% REITs

Coward’s Portfolio – William Bernstein

  • 15% Domestic Large Cap Blend
  • 10% Domestic Large Cap Value
  • 5% Domestic Small Cap Blend
  • 10% Domestic Small Cap Value
  • 5% Europe Total Stock Market
  • 5% Pacific Total Stock Market
  • 5% Emerging Markets
  • 40% Short Term
  • 5% REITs

Global Market Portfolio – Meb Faber
(This is a research based estimate of the global market’s asset allocations)

  • 20% US Stock Market
  • 15% Foreign Developed Market
  • 5% Emerging Markets
  • 22% Corporate Bonds
  • 15% 30-year Bonds
  • 16% 10-year Foreign Bonds
  • 2% TIPS
  • 5% REITs

Gone Fishin’ Portfolio – Alexander Green
(from The Gone Fishin Portfolio)

  • 15% Total US Stock Market
  • 15% US Small Caps
  • 10% Emerging Market Stocks
  • 10% European Stocks
  • 10% Pacific Stocks
  • 10% Short Term Corporate Bonds
  • 10% High Yield Bonds
  • 10% TIPS
  • 5% Gold
  • 5% REITs

Ivy Portfolio – Meb Faber
(from The Ivy Portfolio)

You definitely need the book for the intricacies of how to use this set. Worth the read.

  • 20% Domestic Total Stock Market
  • 20% World Stock Market (ex-US)
  • 20% Intermediate Term
  • 20% Commodities
  • 20% REITs

No-Brainer Portfolio – William Bernstein
(from The Intelligent Asset Allocator)

  • 25% Domestic Large Cap Blend
  • 25% Domestic Small Cap Blend
  • 25% World Total Stock Market
  • 25% Short Term Bonds

Permanent  Portfolio – Harry Browne
(from Fail Safe Investing)

  • 25% US Total Stock Market
  • 25% Long Term
  • 25% T-bills or Cash
  • 25% Gold

Risk Parity Portfolio – Meb Faber
(from Global Asset Allocation)

  • 8% US Large Cap
  • 8% Foreign Developed
  • 35% Corporate Bonds
  • 35% 10-Year Bonds
  • 5% Commodities
  • 5% Gold
  • 5% Reits

Swenson Portfolio – David Swenson
(from Unconventional Success)

  • 30% Domestic Total Stock Market
  • 15% World Stock Market (ex-US)
  • 5% Emerging Markets
  • 30% Intermediate Term Bonds
  • 20% REITs

Warren Buffett Portfolio – Warren Buffett
(from multiple interviews**)

  • 90% S&P 500
  • 10% Short Term Government Bonds

**An important piece of his recommendation is that you dollar cost average into the index. Do not buy all at once. The government bonds are a way to counter inflation vs holding cash.