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How to Invest Like a 22% Super Endowment…. and Avoid Bear Markets! By Prof. Scott Brown, Ph.D. The Big Idea. Get out of severe market drops. Gain 2-4% additional performance. Ferret out what the top funds are holding. 12 Month Moving Average. Smoothes the Price Action.
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How to Invest Like a 22% Super Endowment… and Avoid Bear Markets! By Prof. Scott Brown, Ph.D.
The Big Idea • Get out of severe market drops. • Gain 2-4% additional performance. • Ferret out what the top funds are holding.
12 Month Moving Average • Smoothes the Price Action. • Particularly Telling On Close Only Chart.
Harry Browne’s Permanent Portfolio Fund Investing Strategy • Harry Browne’s original strategy was to invest equally – 25% in each category – into four investments: growth stocks, bonds, precious metals and cash (T-bills or money market funds). • Today, the Permanent Portfolio Fund has a similar mix: • 25% precious metals (20% gold bullion, 5% silver bullion); • 10% Swiss franc bonds yielding less than 2%; • 15% real estate and natural resource stocks, foreign and domestic; • 15% aggressive growth stocks; • 35% in government securities, including T-bills.
Following the Smart Money • Want to know what the best fund managers in world are buying and Selling? • Warren Buffet of Berkshire Hathaway • Mark Yusko Morgan Creek Capital • David Einhorn, Greenlight Capital • Julian Robertson, Blue Ridge Capital
Sec 13 F • Intended to, “Increase confidence in the financial markets.” • Identify Top Fund Manager (Ex. Poker Player David Einhorn, Greenlight Capital). • Download all 13F quarterly Fillings www.sec.gov/edgar.shtml • If Holdings > 10, Use 10 largest holdings. • Equal-weight the 10 holdings. • Rebalance, add/delete holdings quarterly, and calculate performance as of the 20th of the month to allow all filings to arrive.
