Gyroscopic Investing

Any guesses as to how Julian Rubenstein of American Asset Management achieves 8% 2012 return after fees on his firm's version of the ETF PP when Craig R. reports a 6.8% ETF PP return? Could he have tighter rebalancing bands?

I would suspect leverage.

One possibility;
35% VTIx 16.4=5.74
15% shy x .3    =.05
30% TLT x3,3  = .99
20% gld x 7.0  =1.4
  Total      8.18%

Where did you see the 8% for 2012? I did not see any results posted on the website.

All I really noticed was a complete copy of the PP; all the way down to the radio show and some of the same investment rules.

I did not see any sort of tip of the hat to Harry Browne or his Fail Safe investing book.

GT,

Julian Rubenstein reports earning 8% after fees on his PP look-alike for year 2012 during his daily radio show broadcast on WSBR Boca Raton, Fla.

This is great for his clients... but, as I listen to his program, I wonder what he does differently to the PP to squeeze out 2% more return from a portfolio that by his description sounds like the all EFT portfolio recommended in Craig R and Medium Tex's book.

Hey JMOYLE

I clicked on the radio link located on the website.  What I heard was a goal of 8% returns after fees. With a claim of meeting that goal since they started the portfolio. I reviewed the website and it looks like they began the portfolio in 2011. A normal PP would have returned 11.6 in 2011 and 6.6 in 2012 (gross return;no fees). I am not sure it they "tweaked" any allocations or if they are just going on averages? Not sure TBH.

Thanks to all of you that listen to my show. I hope I am clear that the 8% return is an average not an annual return.

Julian, I enjoy listening to your show! Your explanation of how you advise your clients makes more clear sense than any other financial planning program I have listened to in the past 40 years... Well done! Having said that, I was just curious as to how you are able to get 2-3% more out of your portfolio recommendation than I am able to receive when it sounds like the structure of both of our portfolios is the same? Are your rebalancing bands tighter, more frequent, or do you apply a certain level of timing to your recommendations? Obviously, I do not expect you to answer for professional reasons... Just curious! Your program is top notch...Keep up the good work!

JMoyle wrote: Julian, I enjoy listening to your show!

I might be interested in listening to this. Which one is a good 'overview' episode?