Einstein is an Asset Allocation portfolio that is in a rebuilding phase. As readers will recall, assets from this portfolio were required for educational purposes. Money was withdrawn at a time when the market was moving up so positive growth opportunity was lost. For a young investor this is an important lesson to learn.
Many years ago a family needed to make a decision whether to take out an educational loan or to abandon their savings plan. Instead of funding educational expenses out of income and eliminating or limiting their savings plan they took out a loan to cover educational expenses. Fortunately a bull market was operational and the growth in stocks offset the cost of the loan. While markets do not always work in this manner, it is best to avoid withdrawing savings funds if at all possible.
Einstein Asset Allocation Holdings
Below is the current Asset Allocation (AA) model for the Einstein. Once the third quarter dividends are in I will begin to build the portfolio toward the recommended target percentages.
Einstein Rebalancing Recommendations
Currently the Einstein holds eleven thousand in cash. Limit orders are in place to build back several asset classes. The Kipling spreadsheet recommends the Einstein hold 19 shares of VOO. Right now I am not inclined to build VOO back to full capacity as the S&P 500 if overheated and 40% of this index is populated by only 10 of the 500 stocks. This is not a healthy situation.
Einstein Performance Data
Since 12/31/2025 the Einstein has fallen far behind all potential benchmarks. In fact this portfolio is one of the poorer performers tracked here at ITA.
Einstein Risk Ratios
Comparing September 2025 values with September 2024 we see little difference in all four areas. The Information Ratio is the best indicator showing a decline or loss compared to the benchmark.
Holding such a high percentage in SHV has been a drag on performance.
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