Gyroscopic Investing

Hello,

I'm new here, and just wanted to pipe in and say, "Hi, my name is Peak2Trough, and I'm a Harry Browne-aholic."

My background is similar to craigr's, in that I'm from the high-tech (networking) startup world.  I became interested in investing years ago but fell victim to two of Wall Street's most profoundly inaccurate marketing drives:

1) That I'm not smart enough to run my own portfolio and
2) That they can beat the market, if only I let them try (with my money)

Having paid my tuition to learn just how inaccurate these claims are, I finally ventured into the realm of managing my investments, and have learned many things in the process (with much more to go, of course). 

I first learned of the Permanent Portfolio about 5 years ago.  I'm sorry to say that I simply dismissed the idea, because, at the time, my investments were being managed by others and, frankly, it just sounded too "simple".  That dismissal has proven to be a grave error on my part, as the risk-adjusted returns of the PP have clearly demonstrated to not only me, but most people on this forum.

I sought out the PP again earlier this year, and I have put a great deal of study into it and Harry Browne.  I've now read Fail-Safe Investing, The Permanent Portfolio, and Best-Laid Investment Plans...  and given what I've seen so far, I'm now inclined to read everything Harry ever wrote.  I may, in fact, do just that.  After I've listened to all the radio shows 

That said, I have not yet begun investing funds into a PP.  I'm still in due diligence mode, and likely to begin an investment plan in early 2013.  Consider this fair warning to find yourselves another portfolio before I put capital at risk and single-handedly ruin 40 years of solid performance.   

Anyway, just wanted to introduce myself, and commend craigr and MediumTex on a great board and book.  I hope to be able to contribute meaningfully in the future.

Best,
P2T

Welcome to the forum Peak2Trough,

You will find many like-minded Harry Browne enjoyers here and if you've been sampling the site, you'll probably learn a ton not just about investing, but about economics, and where to get the best leather chaps.

There are others on here that are much more knowledgeable than me on the subject of investing but my one items I would say is that with many years of investing, you probably have a lot of taxable gains. I'd say as much as possible move towards the Permanent Portfolio but try to limit your tax hit as much as possible. You could do this by slowly leaving your stocks where they are and building up the rest of your portfolio around it until you have to rebalance.

Just my two lincolns. Good luck and enjoy your stay

Peak2Trough,

People like you are why we're here.

You will learn a lot about the PP, and we will probably learn a lot from you as well.

Thanks for joining the discussion.

Peak2Trough wrote:
Hello,

I'm new here, and just wanted to pipe in and say, "Hi, my name is Peak2Trough, and I'm a Harry Browne-aholic."

My background is similar to craigr's, in that I'm from the high-tech (networking) startup world.  I became interested in investing years ago but fell victim to two of Wall Street's most profoundly inaccurate marketing drives:

1) That I'm not smart enough to run my own portfolio and
2) That they can beat the market, if only I let them try (with my money)

Welcome to the forum. The above two points are very common. Most investors probably have felt them at some point (I have). But when you peel back the layers as you've done you'll realize it's all false.

A widely diversified passive investing approach, like the Permanent Portfolio, is likely to outperform over time simply because it not only grows money, but also controls emotions. I think most investors underestimate their real tolerance for risk (even I do). So I think using a portfolio that has lower risk is a really good idea. You can always try to juice returns with speculative plays if you want (but not with money you can't afford to lose!).

Harry Browne hated war and wrote some excellent articles along those lines. That's where I first learned of him, only after he was dead. If I had known about his financial advice at around the same time I'd probably be about 2-3 grand better off right now.

Correction 2-3 hundred grand better off!