Gyroscopic Investing

Posted: **Tue Oct 09, 2012 6:18 am**

I just thought that I would also post my review here:
Top shelf investment book I gave it 5 stars

I read the book from cover to cover and really enjoyed it! I have been a follower of the Permanent Portfolio for a long time. This book is well written and has all the information you need to understand and implement this easy and safe portfolio. I personally call this "the learn how to invest without losing sleep method of investing". This book includes updated information on investment products that did not exist when Harry Browne wrote the original "Fail Safe Investing" book. Many investment professionals will hate the fact that using these principles empowers individuals to invest on their own and have better results year after year then they can provide for their clients.

Posted: **Tue Oct 09, 2012 2:48 pm**

steve wrote: I just thought that I would also post my review here:
Top shelf investment book I gave it 5 stars

I read the book from cover to cover and really enjoyed it! I have been a follower of the Permanent Portfolio for a long time. This book is well written and has all the information you need to understand and implement this easy and safe portfolio. I personally call this "the learn how to invest without losing sleep method of investing". This book includes updated information on investment products that did not exist when Harry Browne wrote the original "Fail Safe Investing" book. Many investment professionals will hate the fact that using these principles empowers individuals to invest on their own and have better results year after year then they can provide for their clients.

Thanks for that great review.

Posted: **Sat Oct 13, 2012 9:01 pm**

I just got done reading the book. Nice job guys!

It answered all my questions about the Permanent Portfolio.

I’ve been recommending this book to friends and family.

I wrote a review on Amazon.com.

Posted: **Sat Oct 13, 2012 9:15 pm**

ozzy wrote: I just got done reading the book. Nice job guys! It answered all my questions about the Permanent Portfolio.

I’ve been recommending this book to friends and family.

I wrote a review on Amazon.com.

Thank you for that excellent review.

I'm glad to hear you enjoyed the book.

Posted: **Sat Oct 13, 2012 11:11 pm**

ozzy wrote: I just got done reading the book. Nice job guys! It answered all my questions about the Permanent Portfolio.

I’ve been recommending this book to friends and family.

I wrote a review on Amazon.com.

Thanks for the great review. We really appreciate it.

Posted: **Sun Oct 14, 2012 9:14 pm**

Just ordered the hard bound version, today. After I read it, I'll post a review and then plan to order a copy for both my father and brother-in-law.

Posted: **Sun Oct 14, 2012 11:58 pm**

just got the book. still digesting. one question for Craig/J.M.: on chapter 3 about performance of the PP: Table 3.1 returns were resulted from rebalancing to 25%/each yearly or when 15/35 band hit? if they're yearly rebalancing, what is the returns for 15/35 rebalancing? I assume this maybe already discussed somewhere so I'd appreciate the link as I failed to find it myself.
Thanks.

Posted: **Mon Oct 15, 2012 12:02 am**

edamat wrote: just got the book. still digesting. one question for Craig/J.M.: on chapter 3 about performance of the PP: Table 3.1 returns were resulted from rebalancing to 25%/each yearly or when 15/35 band hit? if they're yearly rebalancing, what is the returns for 15/35 rebalancing? I assume this maybe already discussed somewhere so I'd appreciate the link as I failed to find it myself.
Thanks.

That assumes annual rebalancing. This makes it easier to do industry style benchmark comparisons against other portfolios. I would need to run simulations for 15/35 rebalancing bands and it would be hard to compare them against other approaches because they may have completely different rebalancing thresholds.

Posted: **Mon Oct 15, 2012 12:36 am**

Thanks Craig, for such quick reply.
would the returns from 15/35 rebalancing better than yearly one?

Posted: **Mon Oct 15, 2012 12:55 am**

It all depends on when you start the portfolio, etc. Usually I would say that letting the momentum ride out for a bit on assets with the 15/35 bands is the better option. Rebalancing yearly however is simpler if you can do it in a way to avoid the taxes. Just depends on what you want to do. Most people probably do the 15/35 bands or maybe 20/30 bands rather than yearly.

Posted: **Mon Oct 15, 2012 5:44 pm**

The book is currently ranked #13 in the Amazon Investing section, right behind Peter Schiff's latest book and right in front of Investing For Dummies.

For some reason being positioned between those two books strikes me as humorous.

Thanks for everyone's interest in the book. We really appreciate it.

Posted: **Mon Oct 15, 2012 6:19 pm**

The book has been declared an "investment gem" by Taylor Larimore on the Bogleheads site. Congratulations!

Posted: **Mon Oct 15, 2012 8:09 pm**

Reub wrote: The book has been declared an "investment gem" by Taylor Larimore on the Bogleheads site. Congratulations!

This definitely tells a lot, Taylor Larimore's opinion is highly respected at BH. So, here we are - against all odds, in spite of loving gold and LTTs, PP book gains recognition from Bogleheads!

Posted: **Mon Oct 15, 2012 11:43 pm**

Reub wrote: The book has been declared an "investment gem" by Taylor Larimore on the Bogleheads site. Congratulations!

!!!

Posted: **Tue Oct 16, 2012 12:03 am**

craigr wrote:
edamat wrote: just got the book. still digesting. one question for Craig/J.M.: on chapter 3 about performance of the PP: Table 3.1 returns were resulted from rebalancing to 25%/each yearly or when 15/35 band hit? if they're yearly rebalancing, what is the returns for 15/35 rebalancing? I assume this maybe already discussed somewhere so I'd appreciate the link as I failed to find it myself.
Thanks.
That assumes annual rebalancing. This makes it easier to do industry style benchmark comparisons against other portfolios. I would need to run simulations for 15/35 rebalancing bands and it would be hard to compare them against other approaches because they may have completely different rebalancing thresholds.

Craig, would you please run simulations for 15/35 rebalancing bands vs. yearly rebalance so we can compare the returns? Thanks

Posted: **Tue Oct 16, 2012 12:57 am**

edamat wrote:Craig, would you please run simulations for 15/35 rebalancing bands vs. yearly rebalance so we can compare the returns? Thanks

I think someone here has done that already. I can't find the thread right now, maybe someone will be kind enough to locate it for me.

Posted: **Tue Oct 16, 2012 1:04 am**

foglifter wrote:
Reub wrote: The book has been declared an "investment gem" by Taylor Larimore on the Bogleheads site. Congratulations!
This definitely tells a lot, Taylor Larimore's opinion is highly respected at BH. So, here we are - against all odds, in spite of loving gold and LTTs, PP book gains recognition from Bogleheads! ;D

Well I respect Taylor quite a bit so I'm very happy he is considering doing this. As he will say: "There is more than one road to Dublin." As long as you are following a simple passive indexing strategy we will all be in Dublin to enjoy some nice Guinness together. Taylor's mantra of "simplicity" was a big influence on my own investing style through the years and meshes well with what Harry Browne advocated to keep things simple.

As we say in the book: "Complexity kills returns."

Posted: **Tue Oct 16, 2012 8:03 am**

craigr wrote:
edamat wrote:Craig, would you please run simulations for 15/35 rebalancing bands vs. yearly rebalance so we can compare the returns? Thanks
I think someone here has done that already. I can't find the thread right now, maybe someone will be kind enough to locate it for me.

One would expect annual rebalancing to more closely mimic 20/30 rebalancing bands, since historically 20/30 rebalancing has happened at closer to annual intervals than 15/35 rebalanicng has (15/35 rebalancing occurs every 2 to 2.5 years). 20/30 rebalancing lags 15/35 rebalancing in long term returns by just a bit, though it's also slightly less volatile.

I would expect to see slightly lower long term returns from annual rebalancing compared to a 15/35 rebalancing approach.

Posted: **Tue Oct 16, 2012 8:11 am**

Reub wrote: The book has been declared an "investment gem" by Taylor Larimore on the Bogleheads site. Congratulations!

That's great (and well deserved!) As I've said all along, they may not like gold very much, but the Bogleheads are the good guys.

Gyroscopic Investing

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Re: Permanent Portfolio Book - Hardcover and eBook Versions Now Shipping!

Re: Permanent Portfolio Book - Hardcover and eBook Versions Now Shipping!

Re: Permanent Portfolio Book - Hardcover and eBook Versions Now Shipping!

Re: Permanent Portfolio Book - Hardcover and eBook Versions Now Shipping!

Re: Permanent Portfolio Book - Hardcover and eBook Versions Now Shipping!

Re: Permanent Portfolio Book - Hardcover and eBook Versions Now Shipping!

Re: Permanent Portfolio Book - Hardcover and eBook Versions Now Shipping!

Re: Permanent Portfolio Book - Hardcover and eBook Versions Now Shipping!

Re: Permanent Portfolio Book - Hardcover and eBook Versions Now Shipping!

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