The Awesome Portfolio

Well, a 60-40 portfolio, look, it's not a bad portfolio.

It's pretty good.

It returns.

It has returned over the last 54 years 9.44%.

which is pretty good.

And most of the time, the bonds are negatively correlated to stock, so it reduces your volatility, right? So it's a good portfolio.

The awesome portfolio actually returns a little bit less.

It returns 9%.

but it massively cuts your volatility.

Like from the S&P 500, it cuts it in half and the drawdowns go to minimal.

So I put in the book a list of the worst five drawdowns for the awesome portfolio.

2022 was 12%.

2008 was 9%.

That was the year of the financial crisis.

The stock market went down 57%.

The awesome portfolio was down 9%.

The third, fourth, and fifth worst drawdowns are 1%.

This thing doesn't have drawdowns.

And as you know from the hedge fund world, drawdowns are the worst thing in the world because they affect your psychology, you know, and they cause you to puke at the worst possible time.

So this thing is magical.

It is the solution for everybody.

Exactly.

So it is the combination of offering a portfolio that is structured to generate returns, as you said, has a better sharp ratio than the 60-40 traditional portfolio and takes the weight of the investing world off of your shoulders.

Yeah.

The reason it does that is because the awesome portfolio has financial assets and hard assets, which I think is totally brilliant.