Where I Invest

Where I Invest

My investment capital is distributed between portfolios of Peer to Peer Lenders in multiple currencies, and Growth Portfolios of mixed assets including Stocks, Bonds, REIT’s, and Gold (also in multiple currencies). The investments are low maintenance, low to medium risk, with very reasonable risk/return ratios. Investments require at maximum 1-2 hours per month to maintain once they are set up.

 

Peer to Peer Lending Portfolio

Returns on the Peer to Peer Lending Portfolios are between 5% and 15% depending on currency (current monthly returns are available here). Using lower to medium risk Peer to Peer investments. I use Peer to Peer Lending because returns on investments are far superior to returns currently available from banks or short term government bond coupon yields.

My strategy with Peer to Peer Lending is a “lazy investor” strategy where I am looking for the best returns possible, for the least amount of work. Most of my accounts are “auto-invest” accounts where once the capital is lent out it’s really just a case of checking it every few weeks to make sure everything is going as it should.

 

Read more about my Peer to Peer Portfolio and returns.

 

Growth Portfolios

The Growth Portfolios are time tested over more than 20 years of actual investment.  They are backtested through similar asset-class backtesting for almost 50 years. My main portfolio has produced an annual average return of around 10% CAGR (Compound Annual Growth Rate), with an average drawdown of around 9% and a maximum drawdown of 14.75% in the 2008 financial crisis. Again, I like the “lazy investor” aspect of these portfolios which just need rebalancing one time per year after the initial investment.

 

My Main USD Portfolio Asset Distribution

Current Asset Distribution Chart

GBP Permanent Portfolio Asset Distribution

 

GBP Permanent Portfolio Asset Distribution

 

For more detail on how the Growth Portfolios are constructed click here.

Below is a comparison of how my Personal Growth Portfolio compares to other popular portfolios over the last few years. As you can see, the % returns and drawdowns are better than the original Harry Browne Permanent Portfolio.

Portfolio 1 is my current Personal Portfolio Allocation.

Portfolio 2 is the original Harry Browne’s Permanent Portfolio mix. Cash has been left out, as I think that skews it to the downside unfairly.

Portfolio 3 is made up of a 50/50 mix of Stocks & Bonds using ETF’s. 

The S&P ETF is there as a representation of the US Stock Market Baseline.

 

Growth Portfolio Comparison 1

Growth Portfolio Comparison 2

Growth Portfolio Comparison 3

 

BALANCES shown are just there to show growth as an example. They are not actual portfolio values.

Click here to see a live, current version of this backtest.

 

If you would like to see longer term asset class backtests, see my Backtesting page.

 

 

Here is a link to the actual Growth Portfolios Returns.

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