The Gone Fishin' Portfolio: Get Wise, Get Wealthy--And Get on with Your Life

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

I pre-ordered my copy and I'm so glad I did. As a long time reader of Alex Green's newsletters, I knew it would be a good read and I wasn't disappointed. Finally, a Wall Street veteran lets us in on the truth of how most investment banks really operate: Stockbrokers are better salespeople than investment advisors. Brokers trade for commissions, insurance agents sell some of the highest-cost products in the industry, and even planners will convert a substantial portion of *your* assets into *their* assets. I've worked in financial services for years and it's pretty scary to think a 23-year old kid without much more than a Series 7 license can make investment decisions for clients! This book draws on ideas from the philosophies of the top investors of all time - Peter Lynch, John Templeton, and Warren Buffet. They might have different investments styles, but in the end, none of them were market timers or forecasters. Alex Green repeatedly stresses the mistake of trying to time the market. And he's right. Buy this book and take charge of your own financial future, while avoiding all the mistakes so many first-time online "day-traders" make.

Aside from the book being readable and enjoyable, it finally does what no other investment books do... tell you what to do! Instead of complex formulas and vague recommendations, this book shows you exactly what to invest in and in what amounts. It's a portfolio that will work for 99% of investors. Of course it also explains why this portfolio works and proves how the portfolio beat the market in good times and bad. When just a few percentage points of extra return can completely alter your retirement, it's important to manager your portfolio properly without sending half of it to your financial adviser. And this book shows exactly how. One of the best and most direct investment books available.

Kudos to Mr. Green for exposing Wall Street in the book. I've had a feeling for years that the system is rigged against Ordinary Joe investor, but now I have proof from a Wall Street veteran. The strategy in the book -- which has beaten the market for years -- is simple, yet precise. But the best part is that Mr. Green tells you, very specifically, what to invest in! Tell me the last time you've read an investment books that does that.

Mr. Green has boiled profitable long-term investing down to a 20-minute annual exercise. And his recommended portfolio beats the market in good AND bad times. (The proof is all there.) The portfolio will not only diversify you into stocks and bonds, it will diversify you among all the major asset classes - gold, U.S. stocks, Treasuries, foreign stocks, etc. - which, as he explains, is where the magic is. He'll show you how much (in percentage terms) of your nest egg to put in each asset... as well as the specific investment to buy to get exposure to each one. (You'll also cut your investment costs by a wide margin, which really adds up.) I've read Graham's Intelligent Investor and Security Analysis - both classics, and incredible guides on managing risk. But The Gone Fishin' Portfolio, which also, incredibly, minimizes your risk and increases your total return, tells you specifically what to buy - something you just can't get out of the classics. (Green's investments will still work 40 years from now - a true "set and forget" portfolio.) I've ordered a copy for my God daughter AND my parents... and I'm recommending it to all of my friends who still think they can beat the market willy nilly. A must read, for sure.