Lazy portfolios

Investment Summary
Lazy portfolios are broadly diversified portfolios and perform well in most market conditions.Lazy portfolios contain low-cost funds which are easy to rebalance. Investors can maintain the same asset allocation for an extended period of time and this is the reason why they are called lazy.

Lazy Portfolios are simple investment strategies that experience heavy losses during market corrections and market crisis.

AssetMacro offers 200+ Investment Strategies with higher returns, lower risk and losses than Lazy portfolios.

Investment Performance (Good Investment Selection Guide)
Investment Return (?): 9.75% Volatility (?): 11.45% Sharpe Ratio: 0.45 Maximum Drawdown: -21.60%

Investment’s Fundamental Concept:
Lazy portfolios are broadly diversified portfolios and perform well in most market conditions. Lazy portfolios contain low-cost funds which are easy to rebalance. Investors can maintain the same asset allocation for an extended period of time and this is the reason why they are called lazy.

Two Fund Portfolio
Risk Ferri created the Risk Ferri portfolio which is a portfolio consisting of two funds which allows the investor to invest in US Stock market, Internation stock markets and bonds.

Two Fund Portfolio

Three Fund Portfolio
Three Fund Portfolio created by many authors and investors typically consist of 1. bonds (total bond market exposure or TIPS) 2. US Stock Market and 3. International Stock Market.

Three Fund Portfolio Allocation

The historical Performance of Three Fund Portfolio for the period 1972 to 2014 is the following:

Three Fund Portfolio

Bill Schultheis coffeehouse portfolio
Coffeehouse portfolio allocation has exposure in US Bonds Market, US Stocks Market and International Stocks.

Coffeehouse Portfolio

The historical Performance of the CoffeeHouse Portfolio for the period 1972 to 2014 is the following

Coffeehouse Portfolio

Scott Burns Couch Potato Portfolio, Andrew Tobias Three Fund Portfolio

Couch Potato allocation

Rick Ferri Three Fund Portfolio

Risk Ferri portfolio allocation has exposure in US Bonds Market, US Stocks Market and International Stocks.

Rick Ferri Portfolio

Four Fund Portfolio

Risk Ferri has proposed a four fund portfolio consisting of four low cost total market funds. The allocation between the four total market funds is modified according to the desired allocation between stocks and bonds the investor wishes to hold.

Four Fund Portfolio

The Four fund portfolio is a low cost foundation for a portfolio. A value stock fund can be added either to get exposure to value stocks in US or International stocks. The bond allocation can be split between Treasury Inflation Protected Securities and nominal bonds.

Other Lazy Portfolios

Other more complex portfolios structure by various investors and authors can be found below. These portfolios contain big exposure in bonds typically between 30-40% as well as exposure to REITs, US and/or International stocks, adding large and small value.

  • Bill Schultheis
  • William bernstein portfolio
  • Informed Investor Portfolio
  • David Swensen Portfolio
Other Investment Strategy Characteristics:
Investment Type: Buy & Hold Investment Risk: 3/5 Average Backtest Range: 5-10 years Rebalancing period: Monthly