What is The Ultimate Equity Buy and Hold Strategy?


The cornerstone of Paul Merriman’s advice is “The Ultimate Equity Buy and Hold Strategy.”  Here he discusses each of the equity asset classes investors should hold in the equity portion of their portfolio, even if it’s only 10% of the portfolio. With each equity asset class, Paul recommends an article written about the long-term returns of that specific class. Tracking the risk and return of adding small amounts of each asset class to the portfolio, he makes the case that it is possible to add as much as 2% a year to long-term returns by increasing the diversification by more than 10 times, and without increasing the risk.