This is the article displaying the portfolio by Andrew Tobias. Here you will find a description, performance, and resources for the portfolio as well as detailed information on how to implement it yourself.
Andrew Tobias portfolio, the only portfolio you will ever need
Andrew Tobias is a lot of things. He is the author of 12 books. His most successful and most well-known book is The Only Investment Guide You’ll Ever Need.
The book was first published in 1978 and has been updated ever since. Don’t let the age of the book scare you. It is filled with ages-less wisdom and good money practices. It is also filled with investing tips.
His writing style is witty and self-deprecating which you can’t help to notice just by visiting his personal website at andrewtobias.com.
Andrew Tobias also served as the Treasurer of the Democratic National Committee for 18 years.
Description of the Andrew Tobias portfolio
The portfolio by Andrew Tobias is much like the 3-fund-portfolio by Taylor Larimore and the bogleheads. The portfolio appears in his book mentioned above.
The portfolio is split equally among US stocks, international stocks, and bonds. It is a fairly conservative because of the large bond allocation. Andrew Tobias recommends you use VTI (total stock market), VEA (international developed) and SHY (treasuries). You are not going to get blow-out returns with this portfolio but you will sleep well – very well.
1. Go out for a very nice dinner.
2. Put about a year of normal living expenses someplace liquid, like a bank or money-market fund . . .
3. . . . and roughly equal sums into U.S. Treasury securities maturing in one, two, three, and four years.
4. Put the bulk of the remaining money into stock-index funds, split between domestic and foreign investments.
5. Buy a vacation home or bigger house, if you want one—but not so big that the cost of carrying it will in any way strain you.
a. Do not buy a boat.
6. Be sure your will is in order.
7. Now relax and forget the whole thing. Review it once a year, mainly to roll over your Treasury securities as they come due. Don’t spend any of the investment principal, but enjoy the extra income it throws off
Performance of the Andrew Tobias 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|
|S&P 500 (Benchmark)||1||31.46%||3.69%||13.52%||10.54%||-37.63%||5 - very high risk||0.04%||1.79%|
|The Andrew Tobias Portfolio||3||20.26%||1.08%||7.58%||7.71%||-28.05%||4 - high risk||0.06%||1.61%|
Asset Allocation for the Andrew Tobias portfolio
- 33.33% US Total Stock Market (VTI)
- 33.33% International Developed (VEA)
- 33.33% Short-term treasuries (SHY)
Check the best mutual funds and ETFs here.
Resources for the Andrew Tobias portfolio
Here is Andrew Tobias in a short interview on what you can do with your finances, and what the greatest money pitfalls are for young people
You already know his website
His book The Only Investment Guide You’ll Ever Need is well worth a read.
There’s more than meets the to Andrew Tobias, he is on the shortlist for our most entertaining financial writer.
What of his portfolio?
Is it too simple?
Is it too conservative?