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.”
American Portfolios /// AUS CAN GER UK
- 6% Large Cap Blend (US)
- 6% Large Cap Value (US)
- 6% Small Cap Blend (US)
- 6% Small Cap Value (US)
- 6% World (Ex-US)
- 6% Emerging Market
- 6% World Large Cap Value (Ex-US)
- 6% World Small Cap Blend (Ex-US)
- 6% World Small Cap Value (Ex-US)
- 28% Int. Term Bonds (US) *
- 12% Short Term Bonds (US)
- 6% REIT (US)
(*) Merriman specifically calls for 8% TIPS. I don’t have good data for this asset, but in an effort to best illustrate his design intent I added it to the IT bond allocations. Be sure to read Merriman’s explanation for why he chooses the funds 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.