Bohr was scheduled for a review next week, but since I plan to take a few days off from this blog, here is a quick analysis of a combination income and asset allocation portfolio. The goal with the Bohr is to purchase shares and not sell anything. Or if sold, it should be a rare occurrence. Take a close look at the following investment quiver as I made a few changes. As yet, the portfolio is not fully populated. I hope to complete new purchases early in November.
All the settings for the Bohr are long-term and that is why I am using the LRPC model, even though this model will not completely direct management. As mentioned above, the Bohr is a Buy & Hold portfolio, much like the Schrodinger and Huygens.
Don’t pay undue attention the Buy and Sell recommendations. The goal of the Bohr is to provide a respectable income and take advantage of market growth through the holdings of VTI, VEA, VWO, and VBIAX.
The following worksheet is included to show the percentages invested in each security. Check the third column from the right. When under target, as many are, data will inform us which securities need additions.
The following data runs from 11/30/2020 through 10/21/2021. The IRR for the Bohr (22.3%) is close to the S&P 500 and tops the VTHRX benchmark.
Check out the Risk Ratio table and pay particular attention to the slope (1.1) of Jensen’s Performance Index, sometimes known as Jensen’s Alpha. While the Jensen curve tips over, it actually increased in value. The tip over curve is simply due to the smoothing algorithm.