I just finished reading this book and thought it was pretty good overall.However, as an experienced investor, I know that there are no magic bullets in investing.The book shows performance of the portfolio over the past seven or so years.In those years, the S&P 500 (domestic stocks) performed rather poorly while gold, other commodities, real estate and foreign investments did exceedingly well.This portfolio stays invested at all times in all of these asset classes.I took the liberty of backtesting the same portfolio for the ten years preceeding the 2000's, and the S&P 500 way outperformed this portfolio.This did not surprise me given the fact that we were in a full blown bull market.Those other asset classes underperformed, some badly.
I think that the Gone Fishin Portfolio will perform relatively well in more uncertain markets.However, I am not convinced that will happen when the domestic markets rally strongly.
My point here is that the oversimplification will lure rookie investors into a false sense of security.
I am sorry, but even if you are using a broadly diversified portfolio of mutual funds or ETF's, you must pay attention and understand the weakness of such a simplified approach. You will have to spend more time on your portfolio than 20 minutes a year.
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