The Gone Fishin' Portfolio: Get Wise, Get Wealthy...and Get on With Your Life (Agora Series) [Hardcover]

Alexander Green (Author), Steve Sjuggerud (Foreword)

Book Description

Series: Agora Series | Publication Date: September 9, 2008

A timeless investment guide that reveals how to consistently earn market-beating returns while reducing risk

What every investor needs is a battle-tested strategy that embraces the uncertainty of financial markets-and life in general. One that will yield market-beating portfolio returns in both good times and bad. The Gone Fishin' Portfolio shows you what that strategy is, how it works, and why you should begin using it immediately.

The innovative approach outlined throughout these pages will help investors enjoy a notably high probability of success by using an investment strategy based on the notion that nobody knows what the market is likely to do next, which, in effect, allows investors to capitalize on uncertainty.

• Details one of the safest and simplest ways to reach your long-term financial goals, and explores the financial and psychological challenges you're likely to face in the years ahead
• The "Gone Fishin' Portfolio" is based on a Nobel Prize-winning investment strategy that takes just twenty minutes to implement
• Discusses the relationship between risk and reward in financial markets, and reveals how the investment industry really works

The Gone Fishin' Portfolio will allow you to reach your most important investment goals, beat Wall Street at its own game, and achieve the financial independence you deserve.

Editorial Reviews

Review

"… business leaders in charge of company 401(k) plans might want to look at The Gone Fishin' Portfolio…without non-correlated investments, workers will never be able to protect themselves from the craziness we call 'Wall Street.'" (The Wall Street Journal, September 26, 2008)

From the Inside Flap

Many of us have been conditioned to believe that investing is too difficult and time-consuming to attempt on our own. With so many products to choose from and so many risks involved, a financial "professional" is the only person qualified to handle the money you'll retire on some day, right? The truth is, no one cares more about your money than you do. And with a basic understanding of the investment process and the time-tested strategy offered here, you can successfully manage your own portfolio in less than twenty minutes a year.

In The Gone Fishin' Portfolio, author Alexander Green details an effective yet simple approach to investing that embraces the uncertainty of financial markets, and reveals how you can generate exceptional results during both good times and bad. Page by page, you'll discover how the "Gone Fishin' Portfolio" will allow you to earn superior returns, reduce risk, minimize taxes, and eliminate Wall Street's mountain of fees.

Divided into three comprehensive parts???Get Wise, Get Wealthy, and Get on with Your Life???this reliable resource:

• Discusses the relationship between risk and reward in financial markets, and reveals how the investment industry really works
• Unveils the "Gone Fishin' Portfolio," addresses why it's arguably the safest and simplest way to reach your long-term financial goals, and explores the financial and psychological challenges you're likely to face in the years ahead
• Examines what it means to take your financial destiny into your hands and, at the same time, reclaim your most precious resource???your time

The "Gone Fishin' Portfolio" is based on an investment strategy that won a Nobel Prize in economics. Yet setting it up is a snap and maintaining it is even easier. You'll need less than twenty minutes a year.

The philosophy behind the "Gone Fishin' Portfolio" is based on the best investment thinking available. Investors who have put their money to work this way have enjoyed years of market-beating returns while taking far less risk than being fully invested in stocks. The "Gone Fishin' Portfolio" will allow you to reach your most important investment goals, beat Wall Street at its own game, and achieve the financial independence you deserve.

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Product Details

• Hardcover: 256 pages
• Publisher: Wiley; 1 edition (September 9, 2008)
• Language: English
• ISBN-10: 0470112670
• ISBN-13: 978-0470112670
• Product Dimensions: 9 x 6.6 x 1.1 inches
• Shipping Weight: 15.2 ounces (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (93 customer reviews)
• Amazon Best Sellers Rank: #210,614 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

121 of 129 people found the following review helpful:

4.0 out of 5 stars There are no magic bullets..., September 12, 2008

By 

W. A. McKnight "WAM" (Duluth, GA) - See all my reviews
(REAL NAME)   

This review is from: The Gone Fishin' Portfolio: Get Wise, Get Wealthy...and Get on With Your Life (Agora Series) (Hardcover)

I just finished reading this book and thought it was pretty good overall. However, as an experienced investor, I know that there are no magic bullets in investing. The book shows performance of the portfolio over the past seven or so years. In those years, the S&P 500 (domestic stocks) performed rather poorly while gold, other commodities, real estate and foreign investments did exceedingly well. This portfolio stays invested at all times in all of these asset classes.

I took the liberty of backtesting the same portfolio for the ten years preceeding the 2000's, and the S&P 500 way outperformed this portfolio. This did not surprise me given the fact that we were in a full blown bull market. Those other asset classes underperformed, some badly.

I think that the Gone Fishin Portfolio will perform relatively well in more uncertain markets. However, I am not convinced that will happen when the domestic markets rally strongly.

My point here is that the oversimplification will lure rookie investors into a false sense of security.

I am sorry, but even if you are using a broadly diversified portfolio of mutual funds or ETF's, you must pay attention and understand the weakness of such a simplified approach. You will have to spend more time on your portfolio than 20 minutes a year.

95 of 104 people found the following review helpful:

3.0 out of 5 stars Gone Fishin' Portfolio down 23.25% - no silver bullet, October 2, 2008

By 

Talmadge O'neill - See all my reviews
(REAL NAME)   

This review is from: The Gone Fishin' Portfolio: Get Wise, Get Wealthy...and Get on With Your Life (Agora Series) (Hardcover)

Like so many business books, this book could be condensed into a single page. Here are some of the key bullet points:
* Save more money. i.e. stop drinking starbucks coffee everyday.
* Expect to be able to withdraw 4% of your assets annually after you retire i.e. you need $1 million to generate $40,000 a year in pre-tax income. Some people would say withdrawing 3% would be more conservative.
* Perform asset allocation across 10 Vanguard (index) funds (low cost)as follows: 15% VTSMX; 15% NAESX; 10% VEIEX; 10% VEURX; 10% VPACX; 10% VWEHX; 10% VFSTX; 10% VIPSX; 5% VGSIX; 5% VGPMX.
* This represents a 70% stock, 30% bond portfolio with heavy international slant
* Re-balance every 12-18 months
* Don't use brokers/investment advisors with their 1%+ annual fee
* Don't try to time the market

Good advice. Now how is the portfolio doing? From January 2, 2008 to August 9, 2009, it is down 23.25%. How is that doing relative to a 70% stock 30% bond portfolio (in the case of 70% VTSMX and 30% VIPSX), that would have returned -23.67%. You'd have to compare risk in the portfolio, but I suspect that you'd find that the "Going Fishin'" portfolio will deliver you a basic risk adjusted market return. Nothing fancy. We're not talking endowment fund returns.

[...] [...] [...] What readers should really care about is, if I took the [...] advice, how would I have done. And the answer is - same as any portfolio with similar risk and reasonable diversification. That's not a negative, it just does not live up to any hype.

16 of 16 people found the following review helpful:

5.0 out of 5 stars Couldn't Pass It Up, October 18, 2008

By 

Lightman (New York) - See all my reviews
(TOP 1000 REVIEWER)    (VINE VOICE)   

This review is from: The Gone Fishin' Portfolio: Get Wise, Get Wealthy...and Get on With Your Life (Agora Series) (Hardcover)

Why?

Recently I sold my business, or as the financial community would have it, I experienced a "liquidity event".

The proceeds of the deal now need to be cleverly invested. But what I really want to do is master the art of fly fishing. This seems a lot more enticing than delving into the intricacies of correlation, beta, derivatives, hedge funds, ETFs, active management etc etc etc.

Otherwise stated, going after that lunker rainbow seems a lot more engaging than the quest for the evanescent and elusive alpha.

Enter author Alexander Green and The Gone Fishin' Portfolio. His premise (promise?): a proven method to manage your own money in twenty minutes per year and outperform the great majority of highly compensated managers.

Sound preposterous? Maybe, but after reading The Gone Fishin' Portfolio I'm considering giving it a whirl.

The first part of the book (Get Wise) presents straightforward principles about money and investing. Some examples -

* "Unlike the performance of the stock market, saving is something that is under your control".

* "In most walks of life you get what you pay for. This is emphatically not the case with investment advisors".

* "Experience tells us that it's humility - not superior knowledge - that paves the way to successful investing".

In Part 2 (Get Wealthy) Green talks about long term equity investment and the pitfalls of attempting to time the market. He then debunks active management, making the case that after fees and expenses the great majority of managers fail to match the performance of the overall market. This sets the stage for a discussion of index funds as a low cost, tax efficient approach to equity investing.

Next the author details the Gone Fishing Portfolio itself - an asset allocation of index funds covering domestic and international stocks, various categories of bonds, as well as real estate and gold mining shares as alternative investments.

What about the twenty minutes per year? That's the time it takes to rebalance the portfolio, making sure that the percentages devoted to each asset class remain consistent over time. This simple process makes great sense. It forces the discipline to buy low and sell high. That's because the assets that will be sold in the course of rebalancing are those that have appreciated in value while those that are bought (to bring their value up to that required percentage of the total) will typically be those that have declined.

Simple but powerful principles.

In Part 3 (Get On With Your Life) the author talks about just that. He reminds us of what's really important, writing, "Time, not money, is your most precious resource. It is perishable, irreplaceable, and, unlike money, cannot be saved. The beauty of the Gone Fishin' Portfolio is that it allows you to redirect your time to high-value activities, whether it's work you enjoy, time spent pursuing your favorite activities, or just relaxing with your friends and family".

OK. That's what I needed to hear. To quote our President, "Bring 'em on" (the trout that is).