Famous Portfolios

The Bogleheads (or "three-fund") portfolio is an investment approach that champions simplicity and low costs. It is based on global diversification with just three types of assets: developed market stocks, emerging market stocks, and high-quality global bonds. The underlying philosophy is that it is impossible to consistently beat the market, so the best strategy is to own a broad representation of it through low-cost index funds and stay the course for the long term.

The Golden Butterfly portfolio is a strategy that combines the safety of the Permanent Portfolio with greater growth potential. It allocates 40% to stocks, split between large-cap and small-cap companies to capture different market factors. The remaining 60% is allocated to defensive assets: long-term bonds, short-term bonds, and gold. This structure aims to deliver higher returns than the Permanent Portfolio while maintaining controlled volatility.

The 60/40 portfolio is one of the most traditional and straightforward asset allocation strategies. It involves investing 60% of capital in stocks for long-term growth and 40% in a diversified basket of bonds to provide stability and reduce volatility. Its popularity lies in its simplicity and the historical cushioning effect that bonds have provided during stock market downturns.

Ray Dalio's All Weather portfolio is an investment strategy designed to generate stable returns and protect capital in any economic environment. It is based on balancing risk across four possible scenarios (rising/falling growth and rising/falling inflation) through deep diversification into stocks, bonds of different durations, commodities, and gold. The goal is not to maximize gains in good times, but to safely navigate economic uncertainty and volatility with consistent performance.

The European Permanent Portfolio is a passive and diversified investment strategy, adapted from Harry Browne's original model, designed to offer maximum stability and protect an investor's capital in any economic scenario. Its construction is based on dividing assets into four equal parts (25% each) invested in asset classes with very different behaviors: European stocks to capture growth during times of prosperity; long-term Eurozone government bonds to perform well during deflation; physical gold as the primary hedge against inflation; and finally, cash or very short-term bonds to preserve purchasing power during recessions. The objective of this "all-weather" portfolio is not to achieve maximum returns, but to provide modest yet steady long-term growth while minimizing volatility and major market shocks.