facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause

THE COFFEEHOUSE PORTFOLIO

In 1999, when I began writing a weekly column in The King County Journal, I needed to get creative in describing a Coffeehouse Investor-type portfolio to the reader, and so I designed a 60/40 portfolio of Vanguard Index Funds that looked something like the pie chart above. It seemed like every other week I reminded readers that my 60/40 portfolio was just one example of a Coffeehouse Investor portfolio, but I guess you cannot stop a good thing.

My  seven-fund portfolio took on a life of its own with investors across the nation, highlighted early on by Paul Farrell and his Lazy Portfolios at www.marketwatch.com.

The merits of this portfolio is still endorsed by “Slice & Dice” advocates and its return, going back to 1999, is closely monitored in the “Madsinger Monthly Report” at www.bogleheads.org.  Despite its enduring popularity, the portfolio’s benefit isn’t found in its specific construction nor its 20-year returns. It is found in investors “capturing their fair share of market returns” over time, as Mr. Bogle was fond of saying.

More importantly, for Coffeehouse Investors, it allows them to focus on financial planning issues that matter most of all, including those detailed in our "New World" listed below. 


OLD WORLD / NEW WORLD



Looking to connect with Bill? 

schedule a strategy session with bill