Passive investing, according to Benjamin Graham, is the model I will be applying to the Aristotle Portfolio. For more information, go to this site. While I’ve been aware of the 75%/25% breakdown for some time, interest in this passive model was renewed after I read The 3 Simple Rules of Investing by Michael Edessess et. al.
Using the familiar ranking system available to Platinum members, when TLT is performing above VTI, 75% of the portfolio will be invested in TLT and 25% in VTI. When the reverse is true, 75% will be invested in VTI and 25% in TLT. It is the simplest approach to investing used with any of the ITA portfolios. These are the simple rules for this “passive” model.
Right now TLT is outperforming VTI so I will be moving equity holdings to the TLT treasury ETF. I hope to make most of the moves before the Aristotle comes up for its next review.
Instead of waiting till one quarter passes, I will review the Aristotle every 33 days.