Portfolio

IVY PORTFOLIO

The Ivy Portfolio originates from the idea of studying the investing styles of the largest and most successful college endowments such as Yale and Harvard.

The Ivy Portfolio by Meb Faber mimics the investing strategies of the Harvard and Yale endowments in a form that an individual investor can easily manage.

The Ivy Portfolio also adapts methodology for investors to reduce their risk through a tactical asset allocation strategy to protect them from bear markets.

With all of the uncertainty in the markets today, The Ivy Portfolio helps the investor answer the most often asked question in investing today - "What do I do"?

Meb Faber is the co-founder and Chief Investment Officer of Cambria Investment Management.

7TWELVE PORTFOLIO

The 7Twelve Portfolio is an asset-based approach to diversification that balances portfolio returns by investing in a wide variety of unique asset types. It originates from the investment style of Craig L. Israelsen

In contrast to the old-school definition of diversification in terms of company count, the 7Twelve Portfolio seeks to enhance performance and reduce risk by diversifying among a wide variety of different asset types. The thought process of mixing asset types as similar to making salsa, where individual ingredients may seem bland or way too spicy on their own but are all critical to the success of the recipe. The 7Twelve Portfolio assets are weighted in equal proportions, and he classifies it as a “core” portfolio that should be built around rather than tweaked.

Craig L. Israelsen, Ph.D., is an Executive-in-Residence in the Financial Planning Program at Utah Valley University.

ALL SEASONS PORTFOLIO

The All Seasons Portfolio by Ray Dalio is a simplified version of his famous All Weather fund that can be easily implemented by everyday investors.

Ray Dalio is the founder and chief investment officer of the world’s largest hedge fund, Bridgewater Associates.

The All Seasons Portfolio is built on the philosophical foundation of Dalio’s All Weather Fund, a popular hedge fund among institutional investors. According the All Weather Story, the original goal of the fund was to answer a deceptively simple question:

What kind of investment portfolio would you hold that would perform well across all environments, be it a devaluation or something completely different?

Dalio designed a portfolio capable of succeeding no matter what happens in the markets.

While the institutional All Weather fund includes a lot of active management and a number of investments not available to everyday investors, the All Seasons portfolio is a simplified version that he recommends to individuals looking to build an autopilot portfolio using the same All Weather philosophy.

COFFEEHOUSE PORTFOLIO

The Coffeehouse Portfolio straddles an interesting line between promoting a conservative Classic asset allocation mindset while mixing in a more aggressive slice and dice approach to factor investing. It originates from the investment style of Bill Schultheis . The ideology is that most important concepts in investing are actually not so much about specific asset choices but about three key principles:

Don’t put all your eggs in one basket

There’s no such thing as a free lunch

Save for a rainy day

Bill Schultheis is a Wall Street veteran and a financial adviser at Soundmark Wealth Management.

GOLDEN BUTTERFLY

The Golden Butterfly Portfolio prioritizes consistently desirable investment growth by balancing economic conditions with an eye towards prosperity

The Golden Butterfly is one of the best risk-adjusted portfolios out there, pairing the famous consistency of the Permanent Portfolio and the growth rates of far more aggressive options. It originates from the investment style of Tyler. With a tight band of growth paths that are helpful for future estimates and notably high withdrawal rates that are great for retirees, it’s a particularly dependable portfolio option suitable for both accumulators and retirees alike.

Tyler is a mechanical engineer, investing researcher, spreadsheet aficionado, and the author of Portfolio Charts.

NO-BRAINER PORTFOLIO

The No-Brainer Portfolio is a simple and straightforward approach to asset, region, and factor diversification.

The No-Brainer Portfolio, also sometimes called the Simpleton’s Portfolio, tackles three different types of diversification in the most efficient way possible. It originates from the investment style of Willian Bernstein. Its a well-considered asset allocation that doesn’t depend so much on the handful of large cap companies that tend to dominate stock returns. For a lot of people looking for maximum diversification with minimum effort, that really is a no-brainer.

William Bernstein is a neurologist and financial author who writes prolifically on asset allocation.

SANDWICH PORTFOLIO

The Sandwich Portfolio is an easily investable version of sophisticated allocation concepts designed to help an investor to escape the rat race. It orginiates from the investment style of Bob Clyatt.

This portfolio is famously well known among the FIRE (Financial Independence, Retire Early) crowd, specifically with those looking to “semi-retire.”

While full Rational Investing Portfolio includes lots of assets regularly accessible only to institutional investors, his Sandwich Portfolio is a simplified version suitable for everyday investors who are thoughtful of building a portfolio to last.

Bob Clyatt is an economics major and business professional who semi-retired at 42 to become an accomplished sculptor.

WARREN BUFFET PORTFOLIO

Warren Buffett is undoubtedly the world’s most famous investor and whose philosophies are taught around the globe and are followed by the leading wealth managers.

Warren Buffett believes putting all your eggs in too many baskets can also affect your investment. Buffett also believes that you must do your homework before investing a single penny in any security but after completing your due diligence, you must be comfortable investing a significant portion of your money in the equity market.

Warren Buffett suggests avoiding rapid trading in and out of securities. Though, you might make a lot of money by this method (many traders do that). According to Buffett’s philosophy, it hampers your return on investment. That’s because rapid in and out trading and portfolio turnover increases the amount of taxes; that you have to pay on the capital gains.