This is the article displaying the portfolio by Alexander Green. Here you will find a description, performance, and resources for the portfolio as well as detailed information on how to implement it yourself.
Alexander Green’s Gone Fishin’ Portfolio
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.
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.
Description of the Gone Fishin’ Portfolio
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 smart. It is deadweight to your portfolio, quite literarily. You might get yourself a raise but you will do a disservice to your clients and to 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
Let’s take a look at how it performs.
Performance of the Gone Fishin’ Portfolio
|Portfolio name||Asset class count||1 year return (2019)||Year to date||10 year return||CAGR since 1989||Drawdown||Risk Level||Expense ratio||Yield|
|Alexander Green Gone Fishin' Portfolio||10||21.44%||0.83%||7.74%||8.67%||-28.87%||4 - high risk||0.14%||2.21%|
Outperformance it is not. It does have a slightly lower drawdown. It is still pretty good for a shiny metal wielding portfolio, however.
Asset Allocation of the Gone Fishin’ Portfolio
- 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)
Check the best mutual funds and ETFs here.
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.
What’s your take on the Gone Fishin’ Portfolio?
How do you feel about having precious metals in your portfolio?