Sep 24, 2012
This episode is an interview with Craig Rowland, who is
the co-author of a new book called
The Permanent Portfolio: Harry Browne's Long-Term Investment
Strategy. In the episode we discuss the Permanent Portfolio
strategy and many of the insights from Craig's new book. We talk
about the way in which the Permanent Portfolio approach differs
from other investment strategies including:
- The choice of being an independent investor as opposed to
entrusting your money to someone else
- Achieving diversification in investing, as opposed to
the Warren Buffet quote of "putting all your eggs in
one basket and watching the basket very closely".
- Using an asset allocation strategy based on identifying how
assets react to each of the possible economic conditions, as
opposed to asset allocation based on correlation studies.
- The problems with trying to time the market in investing
- The benefits of a passive investing approach that rebalances
according to a strategy of maintaining diversification.
We also talk about some particular practical issues relating
to the portfolio including
- Creating your own portfolio versus using the Permanent
Portfolio fund (and differences in the fund's approach to the
classic PP strategy)
- The growth of passive indexing strategies in stocks and how
this aspect of the Permanent Portfolio approach is now more
- Craig's thoughts on how best to own gold bullion and the
tradeoff between convenience and safety.
- How the permanent portfolio can help independent investors in
the current context of artificially low interest rates
and Quantitative Easing.
You can also get more information about the concept of the
permanent portfolio in Harry Browne's book "Fail-Safe
" and in many of the previous Voluntary Life podcast
episodes on investing
Neither Craig nor Jake are financial advisors or dealers of any
kind and this podcast only expresses our opinions.