This page summarizes four primarily index-based portfolios created by celebrity investors:
- The Coffeehouse Portfolio by Bill Schultheis
- The Couch Potato Portfolio by Scott Burns
- An estimate of Jack Bogle's personal portfolio
- A portfolio recommended by David Swensen
The following chart compares these portfolios to the S&P 500 from January 2nd 2000 to the current date (July 22nd 2017). This page will update daily to reflect future portfolio returns.
Earlier information is not available due to the non-existence of some funds used by these portfolios. Please keep in mind that this was a favorable period for some asset classes in these portfolios and an unfavorable period for the S&P 500. Future returns are not predicted by past returns. The S&P 500 may outperform these portfolios at any time and for any duration.
The Coffeehouse Investor is a book written by Bill Schultheis that teaches three principles:
- Don't put all your eggs in one basket. (Diversify in different asset classes.)
- There is no such thing as a free lunch (Capture the entire return of each basket, or asset class, through low cost index funds).
- Save for a rainy day. (Develop a long term financial plan)
This portfolio is a sample portfolio using the principles of the Coffehouse. Uses vanguard mutual funds exlusively. See the Coffehouse website for more information.
The Couch Potato Portfolio was created by Scott Burns, a respected financial journalist. 50% stocks (S&P 500 VFINSX) 50% bonds (VBMFX) rebalanced annually. If you can divide by 2, you can do the couch potato portfolio. Scott Burns is a financial journalist and has a blog.
Jack Bogle cound be considered the father of index investing. He founded the vanguard group and has written several books including Common Sense on Mutual Funds. Jack Bogle's portfolio is very conservative weighing in at roughly 60% bonds depending on the time period.
Portfolio recommended by Yale endowment manager David Swensen. The portfolio consists of:
- 30% Domestic Stock (VTSMX)
- 20% REITs (VGSIX)
- 15% Foreign Developed (VDMIX)
- 5% Foreign Developing (VEIEX)
- 15% Inflation Protected Bonds (VIPSX)
- 15% Bonds