Portfolio Einstein Gold Now Available

Today Portfolio Einstein launched Portfolio Einstein Gold, Premium Portfolios. The 59 best performing portfolios since 1989. It is a mix of high, low, and a few medium risk portfolios.

This marks a fundamental change to how portfolioeinstein.com is set up.

The background for Portfolio Einstein Gold is that I want to continue building portfolioeinstein.com. For that to happen, I either need more hours in the day or find a way to get paid for the work I put into portfolioeinstein.com. The first is not possible, so while I would love to provide all this information for free, it is not sustainable.

Last year in October, my greatest joy in life died. He was 2-years old. He was called Felix. He was my son. Right now, I just want to help others improve their lives.

Felix and me (the guy behind portfolioeinstein.com)

The best way of doing that is helping people to invest because I have an outsized mountain of knowledge pertaining to investing. But I also need to help care for the rest of my family. Felix had an older brother.

This is not meant to garner sympathy but to simply explain the reasons for the change to portfolioeinstein.com.

Stay safe,

Jon

Portfolioeinstein Premium Portfolios

2 thoughts on “Portfolio Einstein Gold Now Available”

  1. Jon, I just purchased your gold portfolios. First of all, my deepest condolences for the loss of your son. I have two children and can’t imagine how I would feel if I lost one of them.

    Regarding the gold portfolios, three questions: 1) When there is a commodity recommendation ( DBC/GSC) are you recommending we select one or the other? 2) is there any information on the cost of the portfolios – other than costing them out myself? I note the commodity ETFs are relatively costly. 3) Given your recommendation to keep it simple, I’m curious about the number of portfolios that have six or more components. Interested in your thoughts.

    All the best,

    Steve

    1. Hi Steve,

      Thanks for reaching out again and thank you for your condolences.

      Also thank you for supporting the site.

      Let me see if I can answer your questions.

      1. You are correct about commodities ETFs. They are in the expensive end of ETFs. You want to go with the DBC ETF. I still need to update a few posts regarding this recommendation but overall the DBC ETF has performed better than GSG due to a host of factors, the largest being how they roll over their commodity futures.
      The recommendation is reflected in the article What Is The Best ETF And Mutual Fund?

      A note about the commodities asset class. Commodities have been the worst-performing asset class since 1989 of all the asset classes that are tracked – I think 76 asset classes at this point. I mentioned to you earlier that an asset class, in my opinion, needs to make sense and its return characteristics need to make sense long term. Commodities is one such asset class that doesn’t make sense long term. Commodities which is basically just raw materials is susceptible to humankind’s fantastic capacity for innovation. That means we have (so far at least) continuously improved upon the efficiency in using raw materials, procuring raw materials, and replacing scarce raw materials. This means downward pressure on the prices of the raw material. I suspect this is one of the main reasons why commodities is such a terrible performing asset class. I personally would not recommend the asset class for any portfolio. You could argue that it contributes to the diversification of the portfolio but both relatively and absolutely it is such a bad diversification that you really only get diversification in negative returns, to put it bluntly.

      See the Simon-Ehrlich Wager for the foundational argument why commodities is a long term bad investment.

      2) On the main table on the site there is a column where the cost of the portfolios is calculated but not for the Gold Portfolios. This is indeed an oversight that I need to correct.

      Unless you use some exotic asset classes the cost of the portfolios should be quite low even when you factor in the purchase cost of the ETFs. Index investing has really come very cheap. In my opinion, I consider 0.50% acceptable for a portfolio but aim for 0.25% which is entirely possible.

      3) I’m not sure I understand your last question. If you ask about whether adding more asset classes is worth it, then my research is inconclusive on that. There are some wonderful performing portfolios with just a few asset classes but then you have the Morningstar suite of portfolios that also do extremely well. They sport 10+ number of asset classes. You are correct, however, that personally, I like to keep it simple and be comfortable with what I’m holding. The portfolio also needs to be easy to maintain.

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