Gyroscopic Investing

Mdraf wrote: It is not so easy to read a book, especially about financial matters, in a language that is not your own.

What's even worse is reading a financial book and thinking that it's in a different language.

I have read several such books that I was certain were written in Greek.

I finished the book a couple of days ago. I don't want to spoil it for anyone, so ill just say it was a thought provoking read and that I highly reccommend it.

Early Cuyler wrote: I finished the book a couple of days ago. I don't want to spoil it for anyone, so ill just say it was a thought provoking read and that I highly reccommend it.

Will you adopt any investment strategy of him?

Regards

Pointedstick wrote:

frugal wrote: Can you please post their suggest portfolios.

Why not read the book and find out for yourself? 

Early Cuyler wrote: I finished the book a couple of days ago. I don't want to spoil it for anyone, so ill just say it was a thought provoking read and that I highly reccommend it.

Not sure why folks are so reluctant to post more specifics about the book. This isn't a deeply-plotted mystery novel. And, like Frugal, I am curious. To say, "just read it yourself" could aptly be applied to most of the investment questions on this forum. Just read the PP book and stop asking such dumb questions...

BearBones wrote:

Pointedstick wrote:

frugal wrote: Can you please post their suggest portfolios.

Why not read the book and find out for yourself? 

Early Cuyler wrote: I finished the book a couple of days ago. I don't want to spoil it for anyone, so ill just say it was a thought provoking read and that I highly reccommend it.

Not sure why folks are so reluctant to post more specifics about the book. This isn't a deeply-plotted mystery novel. And, like Frugal, I am curious. To say, "just read it yourself" could aptly be applied to most of the investment questions on this forum. Just read the PP book and stop asking such dumb questions...

BearBones wrote:

Pointedstick wrote:

frugal wrote: Can you please post their suggest portfolios.

Why not read the book and find out for yourself? 

Early Cuyler wrote: I finished the book a couple of days ago. I don't want to spoil it for anyone, so ill just say it was a thought provoking read and that I highly reccommend it.

Not sure why folks are so reluctant to post more specifics about the book. This isn't a deeply-plotted mystery novel. And, like Frugal, I am curious. To say, "just read it yourself" could aptly be applied to most of the investment questions on this forum. Just read the PP book and stop asking such dumb questions...

Fair enough.

As I understood it, Mr. Bernstein's main criticism of the permanent portfolio is that 25% in long term bonds is a very expensive way to insure against what he considers to be a very low probability event.
He believes that the biggest risk facing investors is, by a long shot, inflation.

As an alternative to the permanent portfolio he proposes a portfolio of tips, global value-titled stocks and a "sprinkling" of gold miners and other natural resource stocks.
He also advises readers to hold a nice slug of cash and or short term bonds.

Despite his criticisms of the PP, he seems to believe that it too is a fine way to invest and even recommends Craig / MTs book for further reading.


All the best,

Ryan


Edit: I'd like to stress that this is all from memory and that I could have vey easily left something important out.

Early Cuyler wrote:As I understood it, Mr. Bernstein's main criticism of the permanent portfolio is that 25% in long term bonds is a very expensive way to insure against what he considers to be a very low probability event.
He believes that the biggest risk facing investors is, by a long shot, inflation.

As an alternative to the permanent portfolio he proposes a portfolio of tips, global value-titled stocks and a "sprinkling" of gold miners and other natural resource stocks.

Mr. Bernstein often says that the main problem of investors is to stay the course. The PP not only insures you against low or high probable events, it gives stable growing; something you won't get with a conventional portfolio in years like 2008, neither with gold miners and other strategic stocks. So I think 25% in long term bonds it's not expensive even if we never get real deflation, assuming it helps me to sleep at night and stay the course in very bad years.

Thanks for the synopsis, Early Cuyler. Might make for a viable alternative or variable portfolio.