The Larry Portfolio is the name for a class of portfolios promoted by Larry Swedroe and Kevin Grogan in the book Reducing The Risk of Black Swans. The main idea is that by purchasing the highest return stock assets available, one can reduce overall stock exposure and maintain similar returns to other portfolio options but with less volatility.
American Portfolios /// AUS CAN GER UK
- 15% Small Cap Value (US)
- 7.5% World ex-US Small Cap Value
- 7.5% Emerging Market *
- 70% Intermediate Term Bonds (US)
(*) Swedroe specifically recommends emerging market value. I don’t have data for this asset, so allocated the portion to emerging market (blend). I anticipate the numbers to be reasonably close, but be sure to read Swedroe’s reasoning for why he chooses the fund he does.
Because verified data is not available, this portfolio includes estimated returns prior to 1976. Data for those years is highlighted on each chart.