Being wealthy doesn't mean having all the money in the world, just not having to worry about it.

Lesson 21 – A More Sensible Use of Hedges

As I mentioned in the last lesson, the Permanent Portfolio (PP) is NOT an example of a well-diversified portfolio. It does, however, have, in my opinion, three excellent hedges: Treasury bills, Treasury bonds, and gold. Hedges, as insurance, are to protect you against losses you can’t afford to take. If you’re a long-term investor, a Read more »

Lesson 20 – Ruining a Good Idea: The Permanent Portfolio

I’m not the first person to identify Treasury bills, Treasury bonds, and gold as effective hedges against stock-market declines. In fact, there is a well-known strategy known as the Permanent Portfolio, developed by the late Harry Browne, which has recently been making a comeback. Browne first referred to the idea of a Permanent Portfolio in Read more »