The Sandwich Portfolio by Bob Clyatt is an easily investable version of sophisticated allocation concepts designed to help you escape the rat race.
- 20% Large Cap Blend
- 8% Small Cap Blend
- 6% International
- 10% Int’l Small Cap Blend¹
- 6% Emerging Markets
- 30% Intermediate Bonds
- 11% International Bonds
- 4% Cash
- 5% REITs
1. Clyatt recommends a specific Vanguard international small cap growth fund that was the only international small option available at the time the book was published. Keeping with the spirit of his overall philosophy, I allocated this portion to World small cap blend. n Portfolio Charts includes 60% stocks, I allocated 12% (20% of 60) to international.
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The Sandwich Portfolio is based on the sophisticated market insights of Bob Clyatt, a successful business professional who earned degrees in finance and economics at Berkeley and MIT. While Clyatt’s full Rational Investing Portfolio includes lots of assets regularly accessible only to institutional investors, he describes the Sandwich Portfolio as a simplified version suitable for everyday investors. With small cap tilts, international diversification in stocks as well as bonds, an overall balanced allocation in terms of risk, and even a practical slice of cash, the Sandwich Portfolio is a thoughtful portfolio built to last.
That practical mindset is no accident. The Sandwich Portfolio is more than just an asset allocation by a stuffy economist in a tie. In fact, Clyatt left the rat race at 42 and is best known today as an award-winning artist. So his ideas are more than purely academic, and his proposed portfolio is just one component of a larger strategy with a greater purpose — to escape the work treadmill that keeps you down and empower you to pursue life on your own terms.
Books about the Sandwich Portfolio, and others by Bob Clyatt
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Insights that mention the Sandwich Portfolio
Portfolios with a similar structure or design intent
Merriman Ultimate — Similar structure with multiple assets and additional value tilts
Pinwheel Portfolio — Shared high-level diversification philosophy
Swensen Portfolio — Same percentage of stocks and domestic bonds with more real assets
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