Don’t reinvent the wheel, emulate the best using Billionaire Ray Dalio’s All Weather Portfolio

Millennial Investing podcast host Clay Fink recently discussed how he studies legendary investor Ray Dalio’s investing strategy and his “All Weather Portfolio” stating: “It’s this idea that you can have a number of uncorrelated bets in your portfolio without reducing your expected returns too much. So the idea is that you build a portfolio of a number of assets that aren’t a hundred percent correlated…and you still achieve a satisfactory return with much lower risk and volatility along the way.”

“So if the stock market starts doing poorly, maybe you have some value stocks or gold that will perform well or hold its value better. If there’s really high inflation and investors flock to hard assets like gold, then you participate in that upside.”

Ray Dalio’s All Weather Portfolio consists of 30% US stocks, 40% long term treasuries, 15% intermediate term treasuries, 7.5% diversified commodities and 7.5% gold.

Source:

https://www.theinvestorspodcast.com/millennial-investing/all-weather-portfolio/