The Permanent Portfolio

Life is uncertain and that includes the financial markets. The fact is that when investing in the real world, you need to be prepared for surprises. So why not use an investment approach that takes this into consideration?
A few decades ago, the late Harry Browne—a successful financial advisor and author—created an ingenious investing strategy that did just this. The "Permanent Portfolio," as it is known, was not designed around predicting the future or outsmarting other investors. Instead, it embraced the idea of the unpredictable, the unknowable, and the surprising. Now, authors Craig Rowland and J. M. Lawson add their own experience and insights to this strategy to help you invest and save in a way that will allow you to safely reach your financial goals.
While the approach may appear simple, it is far from simplistic. It actually reflects a sophisticated understanding of economics and financial history and explores ideas about diversification that you may not have come across before. At the basic level, it's just four investment asset classes—stocks, bonds, cash, and gold. This book will show you how to effectively implement the permanent portfolio using such assets and how to avoid investing mistakes that are extremely expensive.
Along the way, you'll discover different implementation options that can fit any situation, and also be exposed to important issues associated with this discipline including storing part of your life savings in a foreign account to protect against natural or manmade disasters. Common pitfalls in the investing world are also covered, from the risk associated with active management and investment industry costs to dangerous biases in what passes for conventional investment wisdom and how to enjoy investing instead of constantly being concerned about it.
You don't need a complicated investment strategy to do well in the markets, you need the right investment strategy. The Permanent Portfolio still remains one of the most effective investment approaches you'll ever encounter. Designed to work under any economic condition, it will put you in a better position to prosper—all with less risk, less management, and less costs than more complicated strategies out there.

CRAIG ROWLAND is a serial entrepreneur who has been associated with several technology start-ups, two of which were ultimately purchased by Cisco Systems, Inc. At his last company, Psionic Software, Inc., he was founder, president, and CTO when purchased by Cisco. Another company Rowland was associated with was purchased by 3Com Corporation. He has provided consulting services to other start-up companies in addition to raising millions of dollars in venture capital for his own business.
J. M. LAWSON is an attorney and retirement plan consultant. His practice involves retirement plan design and compliance issues, as well as assisting employers in creating and monitoring retirement plan investment policies and procedures.