Here’s an interesting excerpt from an MSN money article this month.
One fund that didn’t notice was Permanent Portfolio (PRPFX).
Welcome to a home for your serious money — the money you can’t afford to lose. Launched in 1982 as an antidote to that most dreaded of economic conditions, stagflation, Permanent Portfolio has lost money in only three years, mostly recently 1994.
It sailed through the post-2000 tech-crash turmoil like it didn’t happen, racking up double-digit gains in three of the past five years. This year, as of Nov. 1, it’s ahead 11.4%.
If you could afford a numbered account in a Swiss bank — and because of six- or seven-digit minimums, you probably couldn’t — this is how your money would be managed. The approach is absolutely immune to fashion.
“We’re 20% gold, 5% in silver, 10% in Swiss-denominated assets, like government bonds, 15% in U.S. and foreign real estate and natural resources, 15% in U.S. growth stocks and 35% in U.S. Treasurys and high-growth corporate bonds,” says manager Michael Cuggino.
His turnover ratio last year was 1%, implying an average holding period for his securities of 100 years. The name “permanent” was not lightly chosen.
Here’s the entire article.