Mad Money Machine

Lazy Portfolios

If you haven’t figured it out yet, you should know that I like being lazy.
Lazy portfolios won again last year. Paul B. Farrell has another great article about the lazy portfolios.

Oh, and by the way, compare their results with the IFA portfolios. The 3- and 5-year winner, the Aronson portfolio, had 15.4% and 13.3% annualized gains, respectively. While the IFA Indexfolio(tm) 70, a fund with an equal bond weighting, had 15.19% and 14.07% annualized gains, respectively.

The 1-year winner, Swenson’s, gained 17.62% while the IFA Indexfolio(tm) 60, their portfolio with a 30% bond weighting, did 17.12%.

Note that the IFA returns are after all fees and expenses.

Also note that Ferrell does not calculate the standard deviation of any of the lazy portfolios.