Tracking the Singapore Permanent Portfolio

PP by Hooi Ling

02 Mar Tracking the Singapore Permanent Portfolio

Our favourite investment portfolio for every Singaporean is getting more attention! Business Times senior correspondent, Teh Hooi Ling, wrote about it in Sunday Times.

She did a back test from 2003 with $1 million. In 2012, it grew to $2.04 million. This is an 8% average annual return. But this is not the best part. We all know that stock market gives you close to double digit returns if you hold for a long period of time. But retail investors always make investment decisions based on greed and fear whereby they buy in a bull run and sell in a bear run. The Permanent Portfolio is able to assuage your fear as the drawdown for this portfolio is incredibly low. Hence you will not make the financial mistake of selling low.

Based on her chart, I estimated the portfolio merely dropped from $1.5m to $1.4m during the 2008 financial crisis while the stock market dropped by 50%. With such stability and low volatility, every investor is able to sleep sound at night regardless how the financial markets are performing.

BFP has also started tracking the performance of the Singapore Permanent Portfolio. We have also included a Google Doc which you can download and track your own Permanent Portfolio (it is free of course!). Unlike Hooi Ling, we won’t be so ambitious to start with $1m. We are going to start with $100k from the beginning of 2012. We will forward test this portfolio to show you that it works well for retail investors who are risk averse and have low tolerance for drawdowns. Most importantly, you do not need a lot of knowledge, time and effort to construct and balance this portfolio going forward.

We know that trying to pick stocks can be very frustrating. Skip that frustration, get 21 ideas to finding profitable stocks in an instant. 

The Singapore Permanent Portfolio Performance page will be updated at the end of each month. Join us on this journey and we hope you will consider adopting this portfolio for yourself.



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4 Comments
  • Why investors lose money? : BigFatPurse – Living A Life of Abundance | Investment, Personal Finance and Success
    Posted at 14:38h, 16 March Reply

    […] drop without selling out in fear? The beauty of PP is that the volatility is very low and based on Teh Hooi Ling’s 10-year backtest on PP, there is only one down year in 2008. The STI tanked more than 50% while PP only dropped a mere 7%. […]

  • Benjamin
    Posted at 21:16h, 03 May Reply

    Is there a good time or better time to start the permanent portfolio by first buying the STI ETF ? Now STI is at all time high

    • Alvin
      Posted at 21:23h, 03 May Reply

      You can start anytime by buying all the assets at one go. Do not time the market when setting up PP. At any one time, there will always be an ‘expensive’ asset.

  • What is Permanent Portfolio? | The Turtle Investor
    Posted at 10:40h, 24 October Reply

    […] More discussion on this by Big Fat Purse here. […]

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