Talmud Portfolio

A place to talk about speculative investing ideas for the optional Variable Portfolio

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Bean
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Talmud Portfolio

Post by Bean » Sun May 04, 2014 10:14 pm

“Let every man divide his money into three parts, and invest a third in land, a third in business and a third let him keep by him in reserve.”?

If you were to follow this old school version of the Permanent Portfolio, what would be your modern investment choices and rebalancing rules?

My initial stab via ETFs would be VT, VNQ, and BND. With buy the lagging asset during accumulation, sell the leader during drawdown.  In reality, this would probably also include in each bucket respectively individual dividend stocks, rentals/farmland, and gold/silver for me.
“Let every man divide his money into three parts, and invest a third in land, a third in business and a third let him keep by him in reserve.� ~Talmud
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WildAboutHarry
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Re: Talmud Portfolio

Post by WildAboutHarry » Mon May 05, 2014 7:47 am

For an all-ETF version.

VNQ (land), VTI (business), GLD (reserves).

Accumulation: Add to lagging asset.

Withdrawal:  Draw from largest asset, rebalance annually.
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Re: Talmud Portfolio

Post by Ad Orientem » Mon May 05, 2014 9:14 am

30% VNQ
30% VT
30% BND
10% Gold

Rebalance annually. I think this portfolio would be better than many, maybe even most. But I do see a serious vulnerability to deflation.
Last edited by Ad Orientem on Mon May 05, 2014 9:16 am, edited 1 time in total.
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Bean
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Re: Talmud Portfolio

Post by Bean » Mon May 05, 2014 8:27 pm

Thanks guys for your thoughts. 

A little background into why I am exploring a Talmud portfolio as compared to the PP:  The 25% of the PP in gold, because I am accumulating at a very fast pace, scares me.  It would result in very large gold holdings that introduces risks of storage and large rebalancing sales that outside of my comfort zone.  Plus, the PP never really helps me gauge in a clean way how to balance real estate, like a family farm, against stocks, bonds, and cash.
“Let every man divide his money into three parts, and invest a third in land, a third in business and a third let him keep by him in reserve.� ~Talmud
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Re: Talmud Portfolio

Post by dualstow » Tue May 06, 2014 7:46 am

Bean wrote: Plus, the PP never really helps me gauge in a clean way how to balance real estate, like a family farm, against stocks, bonds, and cash.
An early version of the pp had 15% in "real estate and natural resource stocks." I think that's (real estate + nat.resource) stocks and not (real estate, land) + (nat.res.stocks), i.e. all stocks and not real land. I got this from Craig & J.M's book on the PP. In the kindle version, it's location 7485 of 8914.
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Re: Talmud Portfolio

Post by Kshartle » Tue May 06, 2014 7:53 am

Bean wrote: Thanks guys for your thoughts. 

A little background into why I am exploring a Talmud portfolio as compared to the PP:  The 25% of the PP in gold, because I am accumulating at a very fast pace, scares me.  It would result in very large gold holdings that introduces risks of storage and large rebalancing sales that outside of my comfort zone.  Plus, the PP never really helps me gauge in a clean way how to balance real estate, like a family farm, against stocks, bonds, and cash.
bean have you looked at the Perth Mint?

A point about gold storage costs....the more secure your gold the more valuable it is when you need it.

Imagine a scenario where you had to get out of the country with your gold. You will have to take great risks or bribe guards at the border for sure.

The portion of gold you have securely stored overseas will be much more valuable than gold shoved up your........
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Re: Talmud Portfolio

Post by Pointedstick » Tue May 06, 2014 1:57 pm

RyeWhiskey wrote: Casual observation: I believe the Talmud Portfolio is to be taken more literally than most assume when they speak about recreating it with ETFs. And actual Talmud Portfolio would be 1/3 in land which produces returns (such as timber, farmland, rentals, etc...), 1/3 in business (which could be stocks but would generally be an actual business which you own), and 1/3 in reserves (which would be cash, gold, or guaranteed fixed-income).
Totally agree. This "Talmud Portfolio" seems a lot more like a life prescription than an investment portfolio. If so, what it's really saying is, "Own some productive land, run an income-producing business, and save for emergencies and the future." If anything, the "1/3 in reserve" part is the actual investment portfolio.

So if it were me, this is what I would be shooting for:

1/3 land
1/3 owned business
1/3 permanent portfolio
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Re: Talmud Portfolio

Post by LazyInvestor » Tue May 06, 2014 2:47 pm

Any rabbis on the forum to clarify this portfolio? Is this something Jews are supposed to follow as a must or it's just a recommendation?

Any other religious books that are recommending some portfolios or only Talmud? It'd be interesting to compare if any.
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Re: Talmud Portfolio

Post by dualstow » Tue May 06, 2014 6:31 pm

LazyInvestor wrote: Any rabbis on the forum to clarify this portfolio? Is this something Jews are supposed to follow as a must or it's just a recommendation?
Most Jews alive today have not read one word of the Talmud, which was written by a group of scholars and intellectuals interpreting the holy books. But even if they have read it, it's not a must, like the Torah's injunction against shrimp (Leviticus) which is also ignored by the non-religious.
P.S. Watch out for false Talmud statements proliferating on the web, propagated by people like Jeff Rense and white power groups.
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Bean
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Re: Talmud Portfolio

Post by Bean » Tue May 06, 2014 9:48 pm

Kshartle wrote:
bean have you looked at the Perth Mint?
I will actually be taking a tour of the Perth Mint in about two weeks, but that is a different story.  ;D
“Let every man divide his money into three parts, and invest a third in land, a third in business and a third let him keep by him in reserve.� ~Talmud
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Bean
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Re: Talmud Portfolio

Post by Bean » Tue May 06, 2014 10:18 pm

Pointedstick wrote: 1/3 land
1/3 owned business
1/3 permanent portfolio
^ This is what I was thinking and at the end the day will probably be where I settle.  I firmly believe in owning productive land, being an entrepreneur, and the permanent portfolio.  So might as well do all 3.
“Let every man divide his money into three parts, and invest a third in land, a third in business and a third let him keep by him in reserve.� ~Talmud
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Re: Talmud Portfolio

Post by hedgehog » Wed May 07, 2014 3:40 am

Bean wrote: “Let every man divide his money into three parts, and invest a third in land, a third in business and a third let him keep by him in reserve.”?
Really interesting.

I wonder how the Bible or Quran portfolio looked like.
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