How to set up your own low-cost, inflation-beating, “Gone Fishin” Portfolio!
Recently, we received the following question from one of our South African Investor members:
The reader was interested in the “Gone Fishin” portfolio model as a possible way to invest his son's inheritance…
So let's start with a recap of the “Gone Fishin” Portfolio and how it works…
“The Gone Fishin’ Portfolio” explained…
In 1990, Dr Harold Markowitz won the Nobel Prize in Economics for his ground-breaking paper “Portfolio Optimisation Through Mean Variance Analysis”.
Although many of the concepts used by Dr Markowitz are hard to understand, he won the award because he showed how investors can master uncertainty and, at the same time, generate excellent investment results.
What kind of uncertainty did he master? All kinds.
You see, no one knows how fast the economy will grow, what interest rates will do or whether the rand will rise or fall. And they certainly can’t predict what the overall market will do with any consistency.
So how does Markowitz eliminate uncertainty?
In truth, he doesn’t.
What he does do is show you exactly how to profit DESPITE the fact that uncertainty is a part of life.
A concept you may know very well.
The reason why it works is simple…
You put your money in a number of different assets to smooth your returns over time. That way you never run the risk of investing in duds. When one asset class does badly, a number of others will boost the returns in your portfolio.
Markowitz’s Nobel Prize winning system – asset allocation – is a key foundation of the South African Investor Gone’ Fishin Portfolio.
The Gone Fishin’ Portfolio strictly invests in exchange-traded funds and notes (ETFs and ETNs).
This portfolio is designed to make sure you take neither too much risk nor too little – all at a low cost!
It provides you with a balanced investment portfolio that ensures you AT LEAST outperform inflation.
And the great part is you only have to do 15 minutes of work every year to achieve this.
So how can you build your own Gone Fishin’ Portfolio today?