Alexander Green’s Gone Fishin’ Portfolio

Alexander-green-gone-fishing-portfolio

Alexander Green’s Gone Fishing portfolio is exposed to 65% stocks and 30% bonds. It has 5% in precious metals. It can be built with 10 ETFs. The portfolio is a medium risk portfolio.

For the past 10 years, the Alexander Green’s Gone Fishin’ Portfolio has returned 7.74% with a standard deviation of 13.48%. The dividend yield is 2.2. The 30-year return is 8.67%. Year to date the Alexander Green’s Gone Fishin’ Portfolio has returned 1.13. Last year it returned 21.44%.

What is the return of the Gone Fishin’ Portfolio?

NameAsset class countYear to dateReturn in 201910 year returnCAGR since 1989 (%)Risk levelExpense ratio
Alexander Green Gone Fishing Portfolio101.1321.447.74%8.6730.14%

How do you build the Gone Fishin’ portfolio with ETFs?

  • 15.00%  US Total Stock Market (VTI)
  • 15.00%  US Small Cap (VIOO)
  • 5.00%    REITs (Real Estate) (VNQ)
  • 10.00%  Emerging Markets (VWO)
  • 10.00%  Pacific Stocks (VPL)
  • 10.00%  European Stocks (VGK)
  • 10.00%  Total US Bond Market (BND)
  • 5.00%    Precious Metals (GLTR)
  • 10.00%  High Yield Corporate Bonds (HYG)
  • 10.00%  TIPS (VTIP)

Who Is Alexander Green?

Alexander Green is the Investment Director of The Oxford Club. A membership “club” supposedly designed to help you grow your wealth and prosperity. I have always thought of it as a very clever marketing scheme designed to sell you the publications of Agora.

alexander-green-gone-fishin-portfolio

The Gone Fishin’ Portfolio is detailed in Alexander Green’s book The Gone Fishin’ Portfolio: Get Wise, Get Wealthy…and Get on With Your Life.

I read Alexander Green’s book some 15 years and was blown away by its outperformance while minimizing risk. How was this possible? Alexander Green states himself on his website that it has beaten the S&P 500 since 2003. This is also mirrored on the book’s cover. Is it true?

The Gone Fishin’ Portfolio consists of 10 asset classes, so it has a broad diversification.

That’s the good news, now the bad news.

It is one of the very few portfolios on portfolioeinstein.com that has precious metals in it. In my younger years, I would have praised the inclusion of this asset class. Now, not so much. 

Adding precious metals, including gold to your portfolio, is a not so subtle way to try and make your portfolio look smart. It is not intelligent. It is deadweight to your portfolio, quite literarily. You might get yourself a raise, but you will do a disservice to your clients and your portfolio. 

Warren Buffet has, for many years, commented on gold, I recommend you check out his commentary fx, in his letter to his shareholders. 2011 and 2018 are good.

“[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”

– Warren Buffett

How we select the right ETFs

There are a lot of ETFs out there. Most of them can be discarded because:

  • They are too expensive
  • They hold too few assets and are therefore too illiquid
  • They do not meet the criteria for representing the asset class they are supposed to mirror.

We have carefully selected an ETF for each asset class that the portfolios on portfolioeinstein.com use. If you want to read more about our selection process and see what we consider the best ETFs please visit our article What Is The Best ETF?

If you are a European investor you need to buy European ETFs. We list 47 best ETFs in our article What Are The Best ETFs For European Investors? (Here Is 47).

As of 2020 we also track socially responsible investing ESG portfolios. Socially responsible investing (ESG) portfolios prioritize investing that puts an emphasis on environmental, social and corporate governance issues.

You can find the socially responsible investing ESG ETFs in the same article.

Resources for the Gone Fishin’ Portfolio

You can find the book here. It is worth a read.

See the investment books that I recommend over at 55 Best Investing Books: Boost Your Money and Awesome Brain.

The Gone Fishin’ Portfolio website.

Suggestions for your next steps

Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone

If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful. Rebalancing your portfolio lowers your risk and may even provide higher returns in the long run.

You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool

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