Well, not surprisingly, that's not the only thing Browne was right about. It turns out that despite his passing, Browne is the best money manager around.
MyPlanIQ recently compared the performance of fifteen buy and hold portfolios. Each of the portfolios was measured for performance and volatility over various time periods.
Harry Browne's Permanent Portfolio beat out all others. Here are the growth rates MyPlanIQ found for Browne's Permanent Portfolio:
12.49 (one year growth)
7.40 (3 year growth)
8.99 (5 year growth)
7.31 (since inception)
Here's what MyPlanIQ said about the results:
•The Harry Browne portfolio is the clear leader in both categories and immediately makes it through [for further study]Curiously, MyPlan throws in a neg:
•Harry Browne’s permanent portfolio is the clear winner of the lazy portfolios but there should be concern as to whether the conditions that has enabled it to deliver such sterling results will continueThis is odd because Browne's permanent portfolio is as balanced a portfolio as you can get. MyPlan apparently misses Browne's point re not trying to time the market, which the neg suggests should be done.
I regularly recommend that conservative investors follow Browne'a advice. Recently, I wrote:
Thus, there is a lesson for us all here. Never put all your eggs in one basket. In fact, I recommend, for most, that at least 50% of all money be put aside for investment in four separate categories as outlined in the book by Harry Browne, Fail-Safe Investing. After you have half your assets set up the way Browne suggests, then it is fine to try other investments, but even in this half of your portfolio you should have at least four completely different investmentsIt should also be noted that Harry Browne always viewed the economy from an Austrian perspective. During a recent conversation with Lew Rockwell, Lew told me that he felt Browne's first book, How You Can Profit the Coming Devaluation, contains the best easy to understand explanation of the Austrian business cycle. Lew, who edited the book, says Browne was among the best when it comes to clear writing.
(Thanks to Paul Rice)