2014 performance for a canadian permanent portfolio

[CanPP]

Hi you all,
I thought it would be interesting to post for canadian investors the performance of my portfolio on canadian markets. First, I'm very satisfied with the performance of the canadian PP this year.

So, for 2014, my RRSP gained 5.6% (without considering the dividends). In other accounts, portfolios gained around 4.5% on the whole year.

Being a newcomer to this approach of investing, I tracked very closely my different accounts, and I must say I'm very pleased with the PP approach. I try to be very rigourous with the principles of Harry Browne,  though I'm still on level 1 of diversification. So since the beginning, I bought XIC, CGL.C, ZFL, ZFS, and XSP (for diversification, but never more than 10% of total value of my portfolio), and rebalanced regularly. Some accounts were new, and the 35% rebalancing bands were attained frequently (since I deposit cash regularly). So I did not rebalance on every occasion to keep transaction fees low.

I plan to go on progressively with the approach, and go on level 2 to 4 of diversification. I'm on the way to organize.

Thank you to Harry Browne, Graig Rowland and JM Lawson. I keep reading Harry Browne's books, and I'm always astonished by the depth of his approach. And I keep watching with a new book in the PP approach.

One thing is certain: life is uncertain. Everything keeps changing in a continuous flux.

canPP

[rickb]

Welcome to the forum!  I think you'll find a few fellow Canucks hereabouts.  Keep us posted with how your Canadian PP fares.

Craig Rowland (Craigr here) has said he's not much interested in saying anything more about the PP (ultimately it is kind of boring).  JM Lawson (MediumTex here) hasn't said much lately (perhaps real life intrudes).  Harry Browne died in 2006 (so he won't be saying much).  So I think the prospects for a new book arriving are somewhere between slim and none (closer to none).

[Mike59]

Hey CanPP good to see a fellow Canadian on here.
I use :
Cash, GTU.UN/CGL (split 50/50), XLB and VXC, started this summer, hanging tough near a 25%x4 but I'm accumulating and working ...This is 95% of my portfolio, 5% is play money for market timing and so far Im terrible at that.

I previously held xec and hxt for my equities but found the volatility troubling, am liking the vxc so far.

I am curious what do you mean by levels 2 and 4 diversification, I guess I have to read the book?

[Kmac]

I'm a little confused mike. I don't see any canadian equity at all or bonds? Maybe I'm misreading

[Kmac]

Sorry just saw xlb is a long bond.

[CanPP]

Hi you all,
Mike... You have to read the book. Or listen to the book! I bought the book first and studied the method thourouly (drank all words of it, like water on a hot sunna day), and then listened to the audio book when got tired of reading or wanted to go out (instead of liste inf to music...).

I'm sticking rigourously to Harry brown's methodolgy (level 1: all etfs). Levels 2 to 4 include direct' y buying long and short term bonds, physical gold and geographical diversification. I plan to climb levels one step at a time. I dont' know much about buying bonds, and fund gold very expansive on long term base, and not vero Hardy to sell in times of needs.

Two ther thoughts: first, VXC is less than one year old, and capitalized less than 33 millions. Risky? Second, XLB holds a lot of stuff other than canadian treasury bonds, like Canada Housing Trust bonds...  Risky?

Harry Brown's Fail Safe Investing is a good book too, wich I'm into the reading right now.
Home it helps.
PS. CGL is open to currency risks. Of you're a canadian citizen, you'd better buy CGL.C.

[Bunchi]

Hi CanPP, I read you've been hitting the 35% bands regularly and thus rebalancing a lot. Do you rebalance by selling out of the 35% or just buying the underperformers to bring all assets to 25%?

[CanPP]

Hi Bunchi,
I put amounts of fresh cash and rebalance regularly, but dont' quite respect the 35% bands because the relative amounts form total are too low. So I waited to get between 1200$ to 2000$ of fresh cash. Otherwise, fees would have been too expensive.
canPP