Brett Arends’s ROI: This ‘crazy’ retirement portfolio has just beaten Wall Street for 50 years

by | Jan 6, 2023 | Stock Market

You could call it crazy. You could call it genius. Or maybe you could call it a little of both.

We’re talking about a simple portfolio that absolutely anyone could follow in their own 401(k) or IRA or retirement account. Low cost, no muss, no fuss. And it’s managed to do two powerful things simultaneously. It’s beaten the standard Wall Street portfolio of 60% U.S. stocks and 40% bonds. Not just last year, when it beat them by an astonishing 7 percentage points, but for half a century. And it’s done so with way less risk. Fewer upsets. Fewer disasters. And no “lost” decades. Last year, 2022, marked the 50th year of this unheralded portfolio, which is termed “All Asset No Authority,” and which we’ve written about here before. It’s the brainchild of Doug Ramsey. He’s the chief investment officer of Leuthold & Co., a long-established fund management company that has sensibly located itself in Minneapolis, a long, long way away from Wall Street. AANA is amazingly simple, surprisingly complex, and has been astonishingly durable. It consists simply of splitting your investment portfolio into 7 equal amounts, and investing one apiece in U.S. large-company stocks (the S&P 500
), U.S. small-company stocks (the Russell 2000
), developed international stocks (the Europe, Australasia and Far East or EAFE i …

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