A day to celebrate

[goodasgold]

The PP is on a (positive) tear today.

Let's enjoy it while it lasts because, as we all know, tomorrow we could be singing the blues.

I began the PP in January 2013, which was a hell of a year due to the stomach-churning collapse of gold and the drop in LTTs.

After 3.5 years in the PP, I am quite pleased with it over the long run, especially its agnostic attitude toward future gyrations in the equity and gold markets, not to mention interest rates.

As the debtaholic world (private and public, national and international) continues its wild, feckless, who-gives-a-damn moneyprinting stampede toward personal and national bankruptcy, I am especially happy that we PPers hold gold, scorned as we are by the bulk of the investing public.

Let's stay the course, fellow PPers, even though we are bound to pass through rocks and shoals ahead.

[sophie]

You started in 2013? Really? For some reason I thought you'd been in the PP longer than that.

This is a great message for the PP newbies out there. For all the moaning and groaning about the PP's tracking error and especially its performance in 2013, you of all people had the right to complain, but here you are 3 years later sticking with the plan. I am amazed you got through that first year in one piece.

Care to post on your experiences and thoughts during that year?

[buddtholomew]

Agree, newbies should forfeit some of their gains to us old timers who have struggled since 2011 (me personally).

Imagine if you are an investor looking for a portfolio to embrace over the long-term. You invest all your money in the PP ON 1/1/2016. You feel like you've arrived at the holy grail of portfolios

I know I have!

[Cortopassi]

I started Feb 2014. My returns:

2014: 4.04%
2015: -3.26%
2016: 14.34% YTD

Couldn't be happier. And couldn't be more pissed I didn't start this 25 years ago. I would be much more interested in safe withdrawal rates because I *seriously* would have been able to be retired by now if I wanted. I have zero doubt about that. But I have the knowledge to pass onto my kids!

The level of stress went from a 9 to a 1-2 with the PP (any remaining stress mainly all related to gold).

Went to Italy with the family last month for 2 weeks, didn't give a crap about what the markets were doing. Couldn't do that the way I used to invest.

I get to laugh at the business talk on the radio and the jobs report and Yellen and will she raise or won't she, yada yada.

[Kbg]

Well normally I don't post my VPPP in normal PP land, but what the heck as it is at a new all time high today.

2014: 8.98
2015: -9.99
2016: 38.22

The two tweaks I make to a pure 2x version of the PP is to add a pinch of XIV and I split stocks 50/50 between SPX and RUT. I add XIV for its ability to generate returns when stocks are going sideways and RUT as small caps normally outperform in early bull markets whereas large caps outperform in late stage bull markets (usually).

And yes it was very difficult to hold at the end of 2015 with nothing to show but a small loss for two year's of investing, but history says sucky PP years are usually followed by 2-3 excellent years. Fortunately, history rhymed again in 2016.

[Reub]

Agree, newbies should forfeit some of their gains to us old timers who have struggled since 2011 (me personally).

Imagine if you are an investor looking for a portfolio to embrace over the long-term. You invest all your money in the PP ON 1/1/2016. You feel like you've arrived at the holy grail of portfolios

I know I have!

What have they done with the old Budd? Can you bring him back from time to time?

[buddtholomew]

Budd still exists in the flesh and blood.
He has matured financially and emotionally.
At times he posts about his disdain for gold, but is now more commonly seen advocating the PP.

We are on the road to truly building wealth and the PP prevents me from placing newfound security at risk.

P.S. I reserve the right to continue worrying though. I don't want to give up my "Resident Worrier" title just yet.

[goodasgold]

You started in 2013? Really? For some reason I thought you'd been in the PP longer than that.

This is a great message for the PP newbies out there... I am amazed you got through that first year in one piece...

Care to post on your experiences and thoughts during that year?

Hi Sophie:

I became interested in the Boglehead portfolio in about 1999, but not enough to commit to it. So in the 2000 crash I responded as most investors did by panicking and selling a lot of equities.

By 2008 I had for many years been a committed Boglehead, so when the 2008 crash occurred, I viewed it as a buying opportunity and rebalanced into equities. So my Boglehead period was good training in "staying the course."

After (somewhat) early retirement in 2012, I was viewing the Boglehead list one day and saw a posting by Taylor Larrimore. On this list he often excerpts pearls of wisdom from books he is reviewing, and the book in question was Craig and MT's "Permanent Portfolio." The excerpts made a lot of sense to me, so I bought the book and had something of a financial conversion experience (although I still think the Boglehead way is excellent, especially for younger investors who have time to bounce back from major recessions.) After adopting the PP philosophy, the 2013 setback did not discourage me from staying the course.

BTW Sophie, we missed you at the recent PP meet-up. I know you are busy preparing for a European sojourn, so I would like to take this opportunity to wish you the very best in the future. It looks like I will be leaving NYC soon myself, to see more of North America while traveling in a small recreational vehicle (RV). - Goodasgold