Lazy Portfolios in 2021

The following table lists 2021 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 … Read more

William Bernstein’s Coward’s Portfolio – 2021 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 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%

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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%

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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%

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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%

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