The 25/25/25/25 Portfolio: An Effective Investment Strategy

Veteran money managers often embrace cognitive dissonance due to the inherent risks in seeking high returns, as evidenced by the performance of the 25/25/25/25 portfolio, or “permanent portfolio,” created by Harry Browne, which allocates equal portions to stocks, bonds, gold, and cash. Despite its unconventional approach, this portfolio has demonstrated competitive returns and lower losses during market downturns compared to traditional strategies.

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