Purpose of the PP

General Discussion on the Permanent Portfolio Strategy

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buddtholomew
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Re: Purpose of the PP

Post by buddtholomew » Thu Dec 06, 2018 5:01 pm

Appreciate all the responses, thank you.
I bought more SCV today and I’m not sure I would have if I wasn’t invested in the PP.
I’m obviously watching too closely and it is bothering me.
Will try in the new year to stop this insanity.
Still trying to wrap my head around PP expectations, just don’t want to be caught again if/when stocks recover and Gold/LTT’s sell off.
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Kbg
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Re: Purpose of the PP

Post by Kbg » Thu Dec 06, 2018 6:02 pm

I am a recovering Buddaholic. But today I had a good day.

I typed up a response (reaction) to Budd's latest. Accurate, filled with facts, witty, with a slight bit of snark...but then I deleted it.

Today, was a good day. 8)
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buddtholomew
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Re: Purpose of the PP

Post by buddtholomew » Thu Dec 06, 2018 6:39 pm

Kbg wrote:
Thu Dec 06, 2018 6:02 pm
I am a recovering Buddaholic. But today I had a good day.

I typed up a response (reaction) to Budd's latest. Accurate, filled with facts, witty, with a slight bit of snark...but then I deleted it.

Today, was a good day. 8)
You’ve made your point a few times already and I get it.
Thanks for being kind.
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Re: Purpose of the PP

Post by Mr Vacuum » Fri Dec 07, 2018 8:07 am

Kbg wrote:
Thu Dec 06, 2018 6:02 pm
I am a recovering Buddaholic. But today I had a good day.

I typed up a response (reaction) to Budd's latest. Accurate, filled with facts, witty, with a slight bit of snark...but then I deleted it.

Today, was a good day. 8)
Good one, Kbg. Your struggle is shared by many. As tiresome as the fallacies and repetition are, I guess it keeps us all sharp. But pity the fool who searches for “does the PP work?” and finds these threads.
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buddtholomew
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Re: Purpose of the PP

Post by buddtholomew » Fri Dec 07, 2018 10:03 am

Mr Vacuum wrote:
Fri Dec 07, 2018 8:07 am
Kbg wrote:
Thu Dec 06, 2018 6:02 pm
I am a recovering Buddaholic. But today I had a good day.

I typed up a response (reaction) to Budd's latest. Accurate, filled with facts, witty, with a slight bit of snark...but then I deleted it.

Today, was a good day. 8)
Good one, Kbg. Your struggle is shared by many. As tiresome as the fallacies and repetition are, I guess it keeps us all sharp. But pity the fool who searches for “does the PP work?” and finds these threads.
There’s a reason only a handful of investors own the PP and it’s not because it’s at the top of the pyramid year after year. I worry about those who believe the PP is the holy grail to investing when it most definitely is not. Funny how over the years others have come to the realization that a VP heavy in stocks is necessary to balance the 4x25. If you held 4x25 since 2008 how have you done? Poorly, that’s how. Now whose the fool?
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Re: Purpose of the PP

Post by Mr Vacuum » Fri Dec 07, 2018 10:32 am

The fool is the person who thought it had anything to do with the top of a pyramid.
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buddtholomew
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Re: Purpose of the PP

Post by buddtholomew » Fri Dec 07, 2018 10:37 am

Mr Vacuum wrote:
Fri Dec 07, 2018 10:32 am
The fool is the person who thought it had anything to do with the top of a pyramid.
Actually I think you are the fool.
I’ve run across people like you all my life, thinking they are superior than someone else in one way or another.
Again, humorous to me these are usually the losers of the bunch Mr. vacuum cleaner. Like the PP, you suck.
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Re: Purpose of the PP

Post by stuper1 » Fri Dec 07, 2018 11:33 am

Cmon guys, this forum has generally been a civil place. Let's keep it that way.

Budd, we love you, but your posts CAN be a bit irritating. Day after day, more of the same. We get it, the PP ain't doing so great these days. Believe me, none of us are happy about that. The ones who are happy are the ones who only check in once a year. They get to miss all the drama.

Here's the thing, the PP was never designed to be a high-risk, high-reward portfolio. It's designed to be a low-risk, moderate-reward portfolio. Harry Browne said that it's for the money that you CAN'T AFFORD TO LOSE. That's it. It's not meant for your speculative investments that you hope will do really well, although you realize there's a chance they won't. You already realize this, because you're only 40% in the PP anyway, or something like that. So, why all the griping? It gets old after a while.
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buddtholomew
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Re: Purpose of the PP

Post by buddtholomew » Fri Dec 07, 2018 11:51 am

We get it, the PP ain't doing so great these days. Believe me, none of us are happy about that.
As I recall, this is the first post that actually agrees with my point of view...many, if not all others, continue to voice how pleased they are with the portfolio performance and I just can’t align with that perspective.

Like I said, I continue to invest in the 4 asset classes, just not 4x25. I was one of those youthful investors 10 years ago who challenged 4x25, only to find out that those who opposed my position either had a healthy dose of stocks or never held the PP in the prescribed allocation ever. Others have long since abandoned the portfolio or returned with a different allocation altogether. Obviously, there are some that have stayed the course.

So yes I have disdain for those “cocky” individuals especially now that the performance bears out my concerns.
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Re: Purpose of the PP

Post by Cortopassi » Fri Dec 07, 2018 12:29 pm

Some comparisons. Portfolio 1 is the PP, 2 is 60/40, 3 is 100 stock

From my investing start, 1989. Comments. I stuck through the dot com bubble, but sold out in 2008. Regardless, although the PP is lower across the board, after a slow, steady 20 year rise of the PP, stocks collapsed to be nearly even with it, and has been on a lower trajectory since then, but still up.

We are down over 400 points again right now. Gold is up decently. Treasuries flat. So much of this is recency bias. PP is doing what it is meant to, for me at least. Keeping me calm and not caring about the breathless reporting of the "stock market plunging" which I am sure is all over the news right now.

Image

Someone near retirement, started investing in 1974 (data only goes to 1978)

Image

Someone at 40, start 2000:

Image

Starting 2008:

Image
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Re: Purpose of the PP

Post by flyingpylon » Fri Dec 07, 2018 1:09 pm

buddtholomew wrote:
Fri Dec 07, 2018 11:51 am
Like I said, I continue to invest in the 4 asset classes, just not 4x25.
That's true for many of us here, yet somehow we're able restrain ourselves from bellowing "OMG the PP sucks!" every time something happens in the markets.
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buddtholomew
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Re: Purpose of the PP

Post by buddtholomew » Fri Dec 07, 2018 1:27 pm

flyingpylon wrote:
Fri Dec 07, 2018 1:09 pm
buddtholomew wrote:
Fri Dec 07, 2018 11:51 am
Like I said, I continue to invest in the 4 asset classes, just not 4x25.
That's true for many of us here, yet somehow we're able restrain ourselves from bellowing "OMG the PP sucks!" every time something happens in the markets.
That’s my point, flyingpylon - very rare to find someone who holds 4x25. Perhaps if you did, you may understand my frustration. Nevertheless, it is over the top. That much I do understand.
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