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Portfolio of Portfolios

Posted: Wed Mar 12, 2014 9:58 am
by Thomas Hoog
After a discussion with Marc, I have created three portfolios;
1) Core adjusted HB portfolio
2) An experimental VP portfolio based on the Ivy Timed model, see somewhere in the VP section
3) A global dividend portfolio, I love equities
Details on a simple website:
http://www.verstandig-beleggen.nl/index.php?paginaid=2

And then I wondered whether an inquiry is made to the performance and risks of a multi-portfolio strategy. The portfolio of HB is balanced and thus generate higher returns with lower risk. Can there be an ideal combination of portfolios to enhance this effect. For example, the permanent portfolio plus an aggressive equity portfolio plus a Timed model.

Anyone ever heard of?

Re: Portfolio of Portfolios

Posted: Wed Mar 12, 2014 10:57 am
by goodasgold
Thomas Hoog wrote: And then I wondered whether an inquiry is made to the performance and risks of a multi-portfolio strategy. The portfolio of HB is balanced and thus generate higher returns with lower risk. Can there be an ideal combination of portfolios to enhance this effect.
Anyone ever heard of?
After reading favorable reviews of the PP book by Taylor Larrimore and Dr. William Bernstein, I began investing the PP way in Jan., 2013. I placed about 2/3 of my portfolio in the PP, keeping the rest in my old "age-in-bonds" Boglehead plan as a precaution.

In 2013, as we all know, the PP had a "bad" year (although losing 4% real is no calamity by most standards.) I am thinking of increasing the allotment to the PP, as I believe in the long run the PP makes a great deal of sense.

Holding large amounts of gold and cash, which is anathema to the Boglehead philosophy, seems to be a sensible way to go with regard to preserving wealth. I was delighted with the growth of my Boglehead portfolio over the last 20+ years, but I am now tired of riding the roller coaster. Now that I am retired, the thrills and chills of the roller coaster are no longer so appealing, hence the switch to the PP.

Re: Portfolio of Portfolios

Posted: Fri Mar 14, 2014 9:24 am
by frugal
Hi,

Why EU PP is not enough?

???

Re: Portfolio of Portfolios

Posted: Fri Mar 14, 2014 11:47 am
by Thomas Hoog
Ay

The possession of knowledge does not kill the sense of wonder and mystery. There is always more mystery.

Re: Portfolio of Portfolios

Posted: Fri Mar 14, 2014 11:53 am
by Stewardship
Thomas Hoog wrote: The portfolio of HB is balanced and thus generate higher returns with lower risk. Can there be an ideal combination of portfolios to enhance this effect.
No.  The PP is already optimized.

I did read some discussion about leveraged PPs in the VP forum that I found interesting.  This is speculation however, and is part of a Variable portfolio along with all of the choices you listed.