Lazy Portfolios in 2020

The following table lists 2020 total returns for various examples of “lazy portfolios”. Some of the portfolios (Coffeehouse and Coward’s) are designed as 60/40 stock/bond portfolios. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios. The two-fund, three-fund, and four-fund portfolios are scaled to similar stock/bond allocations. Prior to 2018, returns are derived from … Read more

William Bernstein’s Coward’s Portfolio – 2020 update

William Bernstein, investment manager and author, first introduced a version of his “Coward’s portfolio” in 1996. The “coward” refers not to the investor’s risk tolerance but to the strategy of hedging one’s bets and having slices of a number of asset classes. An indexed 60% equity/ 40% fixed income Coward’s portfolio would consist of the … Read more

Lazy Portfolios in 2019

The following table lists 2019 total returns for various examples of “lazy portfolios”. Some of the portfolios (Coffeehouse and Coward’s) are designed as 60/40 stock/bond portfolios. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios. The two-fund, three-fund, and four-fund portfolios are scaled to similar stock/bond allocations. Prior to 2018, returns are derived from … Read more

William Bernstein’s Coward’s Portfolio – 2019 update

William Bernstein, investment manager and author, first introduced a version of his “Coward’s portfolio” in 1996. The “coward” refers not to the investor’s risk tolerance but to the strategy of hedging one’s bets and having slices of a number of asset classes. An indexed 60% equity/ 40% fixed income Coward’s portfolio would consist of the … Read more

Lazy Portfolios in 2018

assetallocationpiechartThe following table lists 2018 total returns for various examples of “lazy portfolios”.

Some of the portfolios (Coffeehouse and Coward’s) are designed as 60/40 stock/bond portfolios. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios. The two-fund, three-fund, and four-fund portfolios are scaled to similar stock/bond allocations. The returns are derived from investments in investor share class Vanguard index funds.

 2018 total return

Portfolio 60/40 70/30
Two-fund -5.85% -6.82%
Three-fund -4.78% -5.57%
Ferri Core four -4.98% -5.63%
Vanguard Core four -4.98% -5.95%
Coffeehouse -5.19%
Coward’s -5.01%
Armstrong Ideal -6.81%
Swensen -5.67%

Read more

William Bernstein’s Coward’s Portfolio – 2018 Update

william_bernstein-William Bernstein, investment manager and author, first introduced a version of his “Coward’s portfolio” in 1996.
The “coward” refers not to the investor’s risk tolerance but to the strategy of hedging one’s bets and having slices of a number of asset classes.
An indexed 60% equity/ 40% fixed income Coward’s portfolio would consist of the following asset classes:

  • US large blend: 15%
  • US large value: 10%
  • US small blend : 5%
  • US small value: 10%
  • US REIT: 5%
  • European equity: 5%
  • Pacific region equity: 5%
  • Emerging markets equity: 5%
  • US short-term bond: 40%

In 2018 the Coward’s portfolio produced the following return:

Year Return
2018 -5.01%

Read more

Lazy Portfolios in 2017

assetallocationpiechartThe following table lists 2017 total returns for various examples of “lazy portfolios”.

Some of the portfolios (Coffeehouse and Coward’s) are designed as  60/40 stock/bond portfolios. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios.  The two-fund, three-fund, and four-fund portfolios are scaled to similar stock/bond allocations. The returns are derived from investments in investor share class Vanguard index funds.

 2017 total return

Portfolio 60/40 70/30
Two-fund 15.82% 17.88%
Three-fund 15.15% 17.10%
Ferri Core four 14.18% 15.97%
Vanguard Core four 15.41% 17.46%
Coffeehouse 14.42%
Coward’s 11.76%
Armstrong Ideal 14.58%
Swensen 13.44%

Read more

William Bernstein’s Coward’s Portfolio – 2017 Update

william_bernstein-
William Bernstein, investment manager and author, first introduced a version of his “Coward’s portfolio” in 1996.

The “coward” refers not to the investor’s risk tolerance but to the strategy of hedging one’s bets and having slices of a number of asset classes. An indexed 60% equity/ 40% fixed income Coward’s portfolio would consist of the following asset classes:

  • US large blend: 15%
  • US large value: 10%
  • US small blend : 5%
  • US small value: 10%
  • US REIT: 5%
  • European equity: 5%
  • Pacific region equity: 5%
  • Emerging markets equity: 5%
  • US short-term bond: 40%

In 2017 the Coward’s portfolio produced the following return:

Year Return
2017 11.76%

Read more

Lazy Portfolios in 2016

assetallocationpiechartThe following table lists 2016 total returns for various examples of “lazy portfolios”.

Some of the portfolios (Coffeehouse and Coward’s) are designed as  60/40 stock/bond portfolios. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios.  The two-fund, three-fund, and four-fund portfolios are scaled to similar stock/bond allocations. The returns are derived from investments in investor share class Vanguard index funds.¹ Lower cost admiral share class funds would add approximately +0.10% to returns. Detailed descriptions of each portfolio’s annual returns are linked.

 2016 total return

Portfolio 60/40 70/30
Two-fund 6.20% 6.80%
Three-fund 7.10% 7.87%
Ferri Core four 6.85% 7.57%
Vanguard Core four 6.89% 7.51%
Coffeehouse 9.44%
Coward’s 9.02%
Armstrong Ideal 7.76%
Swensen 7.38%

Read more

Lazy Portfolios in 2015

assetallocationpiechart

The following table lists 2015 total returns for various examples of “lazy portfolios”.

Some of the portfolios (Coffeehouse and Coward’s) are designed as  60/40 stock/bond portfolios. Other portfolios (Ideal and Swensen) are designed as 70/30 stock/bond portfolios. The two-fund, three-fund, and four-fund portfolios are scaled to similar stock/bond allocations. The returns are derived from investments in  investor share class Vanguard index funds. Lower cost admiral share class funds would add approximately +0.10% to returns. Detailed descriptions of each portfolio’s annual returns are linked.

 2015 total return

Portfolio 60/40 70/30
Two-fund -1.09% -1.32%
Three-fund -0.79% -0.97%
Ferri Core four -0.43% -0.55%
Vanguard Core four -0.74% -0.95%
Coffeehouse -0.93%
Coward’s -0.82%
Ideal -1.55%
Swensen -0.34%

Read more