Merriman Ultimate

According to Paul Merriman, the Ultimate Buy-and-Hold Strategy “creates a sophisticated portfolio with worldwide stock diversification by adding value stocks, small company stocks and real estate funds to a traditional large-cap growth stock portfolio.” There are a few iterations based on the percentage of bonds, and the one shown here is the “moderate” version.

Asset Allocation

  • 6% Large Cap Blend
  • 6% Large Cap Value
  • 6% Small Cap Blend
  • 6% Small Cap Value
  • 6% Int’l Large Cap Blend
  • 6% Int’l Large Cap Value
  • 6% Int’l Small Cap Blend
  • 6% Int’l Small Cap Value
  • 6% Emerging Markets
  • 20% Intermediate Bonds
  • 20% Short Term Bonds¹
  • 6% REITs

Notes

  1. Merriman specifically calls for 8% short term TIPS and 12% short term bonds.  I don’t have good data for TIPS, but in an effort to maintain his design intent I added it to the short term bond allocation.  Be sure to read Merriman’s explanation for why he chooses the funds he does.

Performance

Change the home country to translate the portfolio to local assets, currency, and inflation