April 14th, 2008 - by Ben -
2 Comments
A lazy portfolio is one that is made up of a broad spectrum of the market and requires minimal effort to manage. They are incredibly easy and should beat the markets in the long run. Here is what Kirk of the Kirk Report said about them.
I think the lazy portfolio approach is the very best way to go for the vast majority of investors. In fact, when friends, family, and even casual acquaintances ask me how they should invest in the market, my first and best answer is for them to develop a simple portfolio of index funds and exchange-traded funds (ETFs).
Lazy Portfolio Advice and Articles
Lazy Portfolio Update - Wondering how they are doing in the current market? Look for updates on the above site, currently as of April 8th the 8 lazy portfolios.
Paul Farrell on the benifits and theories behind lazy portfolios. He goes into how a lot of them are doing, why wall street dislikes them, and this is one of the best advice articles out there! He also helps you choose on that is best for you. It should be noted Paul is the father of lazy portfolios :).
The value of portfolio simplicity covers why simplicity and broad index funds will beat the market and mutual funds. Great examples of Yale and Harvard using this strategy to keep growth even when the stock market heads south.
13 Lazy Portfolio Examples - Tried And True
I have compiled a huge list of lazy portfolio examples which you can see along with a short descript. Just click the link to view the portfolio details, background, and more info. I should also plug The Kirk Report for a lot of this info, be sure to join his site as I’m a member and he is one of the best at keeping posts limited to a few a day and on topic.
Ted Aronson’s Lazy Portfolio - In 2006 it returned 15.9% and the 5 year annualized return is 13.3%.
Scott Burns’ Lazy Portfolios - Scott has created five different long term portfolios that are extremely simple.
David Swensen’s Lazy Portfolio - This portfolio is from the the Yale University money manager which has returned 16.1% in the last few years. It should be noted this is also one of Kirk’s favorites.
Bill Schultheis’ Lazy Portfolio - A writer and an advisor for P.A.M he has published his portfolio with the keys beeing diversify into different asset classes, low fee index funds, and long term focus.
William Bernstein’s Lazy Portfolio - Two portfolios, one with 4 index funds and the other with 9. He is the writer of the book Four Pillars of Investing.
Andrew Tobias’ Lazy Portfolio - Andrew is the writer of “The Only Investment Guide You’ll Ever Need” and has released his portfolio which is 3 index funds. An even split between a total stock market, international, and inflation protected fund.
John Wasik’s Lazy Portfolio - John is the author of the book The Kitchen Table Investor…. The entire book is about lazy portfolios and a great read! His portfolio is made up of five index funds.
Frank Armstrong’s Lazy Portfolio - Frank wrote The Informed Investor: A Hype Guide To Constructing a Sound Financial Portfolio and his portfolio is interesting in that the bulk is in short term bond’s and international stock. Very interesting setup.
Jim Lowell’s Lazy Portfolio - Another author who has a nice lazy portfolio with 8 components of different values.
Ben Stein’s Lazy Portfolio - Ben focuses very strongly on a long term focus and on emerging markets. He has 6 funds in the main portfolio and offers a less risky lazy portfolio for those retiring soon or already retired.
Paul Merriman’s Lazy Portfolios - Paul runs a blog and the site FundAdvice.com. He has a huge list of lazy portfolios you can look at as well as explanations.
Roger Nusbaum’s Lazy Portfolio - Roger designed a portfolio that has two funds to cover domestic, two for foreign, one for commodity, and two for fixed income. Solid with with some good commentary.
WisdomTree Lazy Portfolio - Another good one with 9 index funds!
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