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The ‘Lazy Portfolio’ Results Are In
By JLP | January 8, 2008
Paul Ferrell over at MarketWatch recently posted the returns for the eight ‘Lazy’ portfolios he highlighted in his column last year. Here’s a quick look at the results:
You can check out Paul’s column for more details on each portfolio. Be sure and read the comments to Paul’s column. Lots of people don’t like the lazy approach. My guess is that the people who don’t like the lazy approach make their living selling actively-managed products.
Also, I noticed that several commenters didn’t like the portfolios being compared to the S&P 500 Index. I think the S&P 500 Index is used as a benchmark because it is the most-known index available. If you don’t use the S&P 500 Index as a benchmark, what benchmark do you use? There are a lot of benchmarks to choose from. While the S&P 500 Index isn’t perfect, it does at least give people something with which to gauge their performance.
Topics: Index Funds, Investing | 2 Comments »
January 8th, 2008 at 2:43 pm
Ha! The portion of my taxable brokerage account intended for long-term growth (as opposed to the portion of that account I’m using to learn about stock-picking) looks exactly like the Second Grader’s Starter portfolio.
I don’t know what that says about me …
I haven’t captured quite the same gains because I started late in the year. But if Kevin’s not changing, neither am I.
January 15th, 2008 at 7:16 pm
For retirement investing, I always assembled my own mix of index funds but finally gave up. My mix nearly matched those of target-date funds, but I would underperform by a tenth of a percent or two. So it’s Vanguard 2030 fund for me. (A compilation of Vanguard index funds.)