Muscular Investing

Brian Livingston
About the author: is the author of Muscular Portfolios (2018), which reveals the 21st century's best-performing long-term trading strategies, and coauthor of 11 Windows Secrets books (1991-2007). He has been assistant IT manager of UBS Securities, a consultant to Morgan Guaranty Trust (now JPMorgan Chase), and technology adviser to Lazard Ltd., all in New York City. His columns appear in the Muscular Investing blog most Tuesday and Thursday mornings. Learn More

Latest Posts

Muscular Investing

Double the Gain of the Morningstar Bucket Portfolio - part 4

by Brian Livingston

Lazy Portfolios such as Morningstar’s generally ignore asset classes other than stocks, bonds, and REITs. Alternative assets, when combined with a Momentum Rule, give you diversification benefits that produce massive improvements in gains.   This is Part 4. Parts 1, 2, and 3 appeared on Nov. 6, 8, and 13, 2018. We’ve seen earlier in this column that a Lazy Portfolio promoted by Morningstar Inc. — known as the Bucket Portfolio — greatly improves its annualized return to 12.4% instead of 8.7%, with the addition of a single step. That tweak would have given you Read More 

Muscular Investing

Double the Gain of the Morningstar Bucket Portfolio - part 3

by Brian Livingston

Adding one simple change raises the Bucket Portfolio’s annualized rate of return by an enormous 3½ percentage points. Over a 45-year investing career, that would result in an ending value more than four times larger than the static, unchanging Lazy Portfolio version. The only difference is a Momentum Rule, which can be applied to other portfolios even more effectively than the Bucket model allows. Parts 1 and 2 of this column appeared on Nov. 6 and 8, 2018. As we saw in the previous parts of this column, the Aggressive Retirement Read More 

Muscular Investing

Double the Gain of the Morningstar Bucket Portfolio - part 2

by Brian Livingston

Morningstar’s ‘Bucket Portfolio’ is typical of so-called Lazy Portfolios — static investing strategies that never change the percentages allocated to a set of index funds. Fortunately, with one easy fix, we can add an amazing 3½ percentage points to the annualized return of Morningstar’s portfolio. The answer demonstrates a basic use of the ‘momentum factor’ — a rule that economists have proven in hundreds of peer-reviewed studies. This column is Part 2. Part 1 appeared on Nov. 6, 2018. The graph above shows a 45-year simulation of Read More 

Muscular Investing

Double the Gain of the Morningstar Bucket Portfolio

by Brian Livingston

One of the most widely marketed recommendations for individual investors is the ‘Bucket Portfolio,’ developed by Morningstar Inc. This strategy generally underperforms the market — but if you make one simple change, as I reveal in this column, the annualized return jumps by more than 3½ percentage points. That’s huge! It would DOUBLE the gain in your portfolio within a few years: a great benefit for a working career or a comfortable retirement. As I’ve written elsewhere, more than 100 million households in English-speaking countries alone — the US, UK, Canada, etc. — have money in Read More 

Muscular Investing

The Muscular Manifesto

by Brian Livingston

Whether you call it evidence-based investing, 21st-century behavioral science, or Muscular Portfolios, you’re living through a financial revolution. Simple, easy formulas beat the market — complex formulas fail. (The S&P 500 gained 97% in the 10 years ending February 2016, while the average equity hedge fund actually lost 6%.) With trading costs at all-time lows, it’s a Golden Age for you to make serious money. Best money-making trick on Wall Street — save as much as 3% My new book, Muscular Portfolios (Amazon, B&N), reveals today’s most profitable long-term Read More 

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