From the 66 entries in the Lazy Portfolio Smackdown game, I have taken these 19 portfolios in which all component funds existed back on 1 August 2000 through 31 January 2008 and computed their Return vs. Risk profile. To see the components of each portfolio, go to the Portfolios page and find the ID number for the portfolio. [Note, in some cases I substituted regular index funds for Admiral shares, mutual funds for their ETF equivalent, or other similar but not identical funds… such as VGSIX for FIREX in one case. And on lew’s portfolio I cheated and started PCRIX (PIMCO CommodityRealRet Strat Instl) on 1 Jan 2003.]
|45||Bev and Mike Cote||7.56%||4.99%|
|51||Jennifer & Mark||11.40%||10.62%|
The graph below plots the values from the above table. The best place to be is top and left. Note how you could almost draw a line from bottom left to top right. That would be the efficient frontier line. The idea is that the more risk you take, the more you should be rewarded. If a winner were to be awarded in each of three risk bands (0-8%, 8-16%, and 16%+) based upon this graph it looks like HAZEL, Jennifer & Mark, and poulinbob would each get a copy of Index Funds: The 12-Step Program for Active Investors. Although Kevin Ucker and Bev and Mike Cote have it going on too.
It is worth comparing these results with the Professionals I showed in a previous posting.
And just to see what you would have gone through in the past one year, here is how the portfolios did since the start of 2007:
|51||Jennifer & Mark||23.86%||9.89%|
|45||Bev and Mike Cote||7.86%||3.51%|