Gyroscopic Investing

Just a quick post to mention an interesting observation made while setting up an Australian two fund "Smith PP".

For reference: viewtopic.php?f=1&t=9613

The Australian Vanguard Conservative Fund consists of 30% Shares, 60% Intermediate Bonds and 10% Cash.

If you consider the shares/bonds to be the 50% growth/income section of a PP (and tilted towards bonds since the are only intermediate) and...

consider the Gold/Cash portion as 50% savings, do the math and you get

Shares 17% / Bonds 33%. (for a total of 1/2 the PP)
Gold. 39% / Cash 11% (for the other 1/2 of the PP)

And surprise, it is almost the same as the Golden Butterfly, at least in Australia

The "Gold Smith" portfolio

Hal wrote: ↑Mon Jan 27, 2020 6:06 am The "Gold Smith" portfolio

I promise to shrink this when I’m on my desktop.
↳ ✓ done

Very interesting stuff... thanks for updating us Hal!

If Browne were alive today, I imagine he might even be posting on this very board. I'd be fascinated to get his input on all the variations of the ideas he's put forth.

And the Gold Smith portfolio. YES I love it. You came up with the name, I'll just politely request that I can license it from you for a fee.

Cool!

I've noticed that a USA investor can get very close to a PP with an off-the-shelf retirement income fund and a little gold. For example roughly 80% Vanguard Target Retirement Income and 20% gold is pretty darn close to a 4x25 PP.