The first quarter was choppy so now is a good time to update the performance of our model portfolio.
Table of Contents
Portfolio Breakdown
Our model portfolio is 40% stocks, 10% gold/bitcoin, and 50% cash.
The goal of the portfolio is capital preservation and, really, preservation of “pelt.”
If you are a trader or want rapid capital appreciation, this portfolio is not for you.
Built for Comfort
The portfolio is comfortable in most situations:
- If stocks soar, that is fine because 40% of the portfolio is in stocks.
- If stocks plummet, that is fine because 50% of the portfolio is in cash.
- If the government goes crazy, that is fine because 10% of the portfolio is in gold/bitcoin.
The portfolio will not make money in every situation, of course.
Exact Holdings
Here is the exact portfolio we punch into a portfolio analyzer:
- 40% VTWAX: This is a Vanguard fund that invests in 10,000 stocks from around the world. I do not recommend investing only in US stocks.
- 5% GBTC: A bitcoin fund.
- 5% GLD: A gold fund.
- 40% SGOV: Cash.
We compare this against the standard 60% Stock (VTWAX) / 40% Bond (VBTLX) portfolio.
The Results
Here is how our model portfolio stacks up over the period Jan 21 – Mar 26:
- Better return: 9.6% vs 5.9%
- Better drawdown: -15% vs -21%
- Better Sharpe ratio: 0.76 vs 0.3 (a measure of risk adjusted return)
As you can see, our model portfolio outperforms the standard 60%/40% portfolio with lower risk!
The Real Goal
But better returns are not the goal. The goal is to sleep at night, confident that you are well positioned for whatever happens. With all the uncertainty we’re seeing, including America’s trade war miscalculation, having a portfolio built for stability matters more than ever.
Capital preservation means staying positioned regardless of what unfolds. Whether stocks rally, crash, or government instability shakes markets, this approach keeps you grounded.
The numbers speak for themselves: better returns, lower drawdowns, and improved risk-adjusted performance.
Let’s roll.