In this podcast and video), Paul Merriman, Chris Pedersen and Daryl Bahls discuss the 2022 update of "No-Nonsense Portfolios" Tables along with new tables used in a recent presentation at the 2022 White Coat Investor Conference. That presentation was entitled “The Inside Story of 150 Portfolios Better Than Yours.” The two tables) compare the risk and return of 20 different portfolios.
Those listening to the podcast should review the tables) before listening.
Lessons learned:
For each of the 20 portfolios the tables compare:
- The annual, decades, and total returns from 1970 through 2021
- The number of up and down years and average of each
- The growth of $10,000 (range from $1.9 to $9.5 million)
- The most popular portfolios earned less than 1/3 of the two most profitable
The discussion covers many important lessons in the tables:
· There are many ways to measure risk
· Higher returns can be achieved at less risk
· The risk of having too much of a portfolio in one asset class
· The importance of combining small and value with traditional large-cap blend portfolio
· Rebalancing of an equity portfolio can increase the long-term return
· A portfolio can never score well during the decade periods but end up #1 for the whole period
· The portfolio that grew to $9.5 million was less risky than the one that grew to $1.9 million
After the discussion of the tables, Chris, Daryl and Paul talk about the portfolios they would recommend.
