Since 1995 Paul has been writing and teaching Do-It-Yourself investors about the Ultimate Buy and Hold Portfolio. In this 2022 update he uses the UBH table (70-30)) and UBH tables (50-50)) to make the case for 10 equity asset classes he thinks investors should consider owning in the equity portion of their long-term investments.
The key takeaways:
The S&P 500 can easily be “beat” without taking more risk.
The impact of adding just 10% of another equity asset class can improve long-term returns.
The impact of even .1% more return can be life changing over long periods of time.
Adding more risky asset classes can substantially reduce risk.
Diversification of equity asset classes is as important as diversification of individual stocks.
Rebalancing is not about higher returns but is about limiting risk.
Adding international equities can have a meaningful impact on long-term returns whether you add 30% or 50% to the portfolio.
There is not risk in the past, we always know what we should have done.
The UBH Portfolio is not designed to get the best return, but is designed to get a better return than the S&P 500 without substantially more risk.
