Permanent Portfolio

Last year, Ported unveiled an approach to investing where you don’t have to trade in and out of positions, where you don't have to follow the news, and where you don’t even have to worry about the future. Now, he just made it even better.

Private credit growing too big too fast is coinciding with the product becoming increasingly available to ordinary investors through exchange traded funds (“ETF”). The story is instructive to both debt and equity investors.

This company is the Michael Jordan of insurance: no one can beat it. Its results are so impressive that the expectations on this business are immense. And we’ve noticed that virtually every time it reports earnings – no matter how good those earnings are – investors are disappointed and the stock sells off.

Porter’s Permanent Portfolio has less than half the volatility of the stock market while earning twice the S&P 500’s returns. Producing massive excess returns with such little volatility is virtually unheard of in the markets. With higher returns and less risk, Porter’s Permanent Portfolio is overperforming our expectations.

When Shelby Davis died in 1994, his portfolio had achieved a compound annual growth rate of 23% for an incredible 47 years. He is the best demonstration of the third rule of great investing: compounding over the long term.