3 Year Period
5 Year Period
10 Year PeriodOne of the benefits of scanning company 401k plans is finding what I call SharpeStockPortfolios that have positive 3yr, 5yr and 10yr Sharpe ratios. There are more of them than I first thought and in this posting 12 of them were used to demonstrate that a prudent investor dosen't have to put his money in stable value investments to do well even in Black Swan markets.
Another interesting finding for me was that over 5 and 10 year periods a uniform asset allocation for this SharpeStockPortfolio was very close to the Balanced portfolio and even over a 3 year period they were close. That makes rebalancing cheaper and less important than for other portfolios I have scanned. I own 3 of the stocks in the portfolio Berkshire Hathaway, Church & Dwight and McDonalds.
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