Gyroscopic Investing

Sometime in mid 2009 I transitioned from a supposedly conservative (40% equity, small cap and value tilted, globally-diversified DFA fund) portfolio that had been thoroughly backtested and was projected to be subject to at worst an 8-9% drawdown but which lost ~23% during the GFC to the PP. I did so after reading the epic thread on the PP on Bogleheads by Craig Rowland and J.M. Lawson.

At that time I happened to correspond with Bob Clyatt, a Wharton finance guy whose book "Work Less, Live More" is a classic. Since my previous portfolio was basically identical to the one he recommended in his book I asked him what he thought about the PP. He said, "man that's quite a bunker."

Fast forward to today are here are the YTD returns of a slew of popular "lazy" portfolios:

https://portfolioslab.com/lazy-portfolios

The YTD winner should be a surprise to no one, but there are a bunch of other allocations prominent featured on the Portfolio Charts site that also consistently prove their value during market meltdowns like the one we're going through now. Deep gratitude to Harry Browne for his insights, and to Tyler for carrying them forward in new and innovative ways.

As a Golden Butterfly enthusiast myself the only "rebalancing" I plan on doing while this storm is pounding us is to PP-ify my GB - letting the stocks continue their downward drift all the way to 25% if need be and making sure all of the rest is well balanced between Treasuries and gold (I use a barbell of VGSH and VTIP for the bonds anyway).

Love it

And here I thought this post was about a literal bunker haha.

Smith1776 wrote: ↑Sun Apr 06, 2025 12:47 pm And here I thought this post was about a literal bunker haha.

That's how we keep all of the Boglehead's riff raff off of this board. They think we all live in bunkers stocked with AR-15's, gold bars and MRE's.

You mean, you guys don’t?

Kevin K. wrote: ↑Sun Apr 06, 2025 2:47 pm

Smith1776 wrote: ↑Sun Apr 06, 2025 12:47 pm And here I thought this post was about a literal bunker haha.

That's how we keep all of the Boglehead's riff raff off of this board. They think we all live in bunkers stocked with AR-15's, gold bars and MRE's.

I have plenty of Larabars on hand!

Actually, have plenty of several items on hand.

Just part of my buying low philosophy. Stock up, clear the shelves when items on sale.

Recently bought about 60 jars of peanut butter, saving me $60 and an instant 33% return on my investment1

That buying habit allowed me to not have to leave my property for two months after we all came home in March 2020. And, I did not have any food brought to my house. For those two months existed off what was already in my house.

Just another side benefit to my eccentric lifestyle.

What about T.P.?

Kevin K. wrote: ↑Sat Apr 05, 2025 6:07 pm
As a Golden Butterfly enthusiast myself the only "rebalancing" I plan on doing while this storm is pounding us is to PP-ify my GB - letting the stocks continue their downward drift all the way to 25% if need be and making sure all of the rest is well balanced between Treasuries and gold (I use a barbell of VGSH and VTIP for the bonds anyway).

What do you mean? You let the SCV fall and not rebalance into it? Wouldn't this be a good time to do so if you like the GB?

dualstow wrote: ↑Sun Apr 06, 2025 5:09 pm What about T.P.?

More of the same.

I'm not a shop every week for what I need each week person. I buy on sale or large quantities. Hopefully, both at the same time.

I may have ordered a large quantity from Amazon during that time which I'm still using.