Performance & Risk Metrics (2016-2026)
| Metric | Larry Portfolio | Classic 60/40 Portfolio |
|---|---|---|
| CAGR (10-Year Annualized Return) | 9.1% | 8.2% |
| Max Drawdown | -24.5% | -20.5% |
| Sharpe Ratio (Risk-Adjusted Return) | 0.52 | 0.48 |
| Volatility (Annualized StdDev) | 12.2% | 9.8% |
| Best Calendar Year | +28.9% | +22.4% |
| Worst Calendar Year | -19.8% | -18.0% |
| Strategy Type | Passive Portfolio (Strategic Buy & Hold) | Passive Portfolio (Strategic Buy & Hold) |
| Rebalancing Frequency | Annually (fixed target weights) | Annually (fixed target weights) |
Larry Portfolio Philosophy
The Larry Portfolio takes high equity risk by concentrating heavily in Small-Cap Value stocks globally, while holding only short-term bonds. This factor tilt aims for higher expected returns with less interest rate risk.
Classic 60/40 Philosophy
The 60/40 portfolio holds total market index funds, capturing the average market return with average market risk, without taking any specific factor bets.
Which Strategy is Right For You?
Choose GEM if: You are comfortable with monthly monitoring, invest via tax-advantaged accounts (like IRAs or 401ks in the US, or tax-wrapped accounts in Europe), and want to maximize long-term growth while protecting capital from major multi-year bear markets.
Choose 60/40 if: You prefer a hands-off, "set and forget" approach, have a taxable investment account where frequent turnover triggers capital gains tax, and can emotionally tolerate drawdowns of 20-30% without panic-selling.