Good morning, good afternoon, good evening. Depending on the part of the world you’re in. This is Jonathan Satovsky of Satovsky Asset Management and on today’s episode of “Seeking Wisdom, Wealth, and Wellness,” I want to talk about the idea of the permanent portfolio or the Talmudic portfolio.
How do you create an all-weather portfolio that can make it through any season? Good times, bad times, rain, shine. The concept is to have a portion of your money in businesses—because clearly, businesses provide profits and protection from inflation. A third of your money in liquid assets, whether it’s cash or short-term securities, to make sure that when liquidity in the world dries up, you’re never short of liquidity and you’re not in a position to be a forced seller. And then the third bucket is real assets. Whether it’s real estate or hard assets, commodities, and such.
There are going to be scenarios where those assets will zig while traditional stocks and bonds are zagging. So consider a balance in the right equilibrium. Maybe it’s a third, a third, a third. Maybe it’s some different formula, but calibrate so you could be on your path to being healthy, wealthy, and wise.
Have a great day.