Invest Like a Billionaire The 60:40 Portfolio is Dead… Here’s How to Invest like the Top 1%
Aug 5, 2025
The discussion begins with the demise of the outdated 60-40 portfolio strategy, revealing why it no longer meets the needs of ultra-wealthy investors. The hosts introduce the Yale Model, emphasizing alternative investments and uncorrelated assets. They dive into how regulatory changes are opening doors for both wealthy and retail investors to explore new opportunities. The conversation also focuses on the evolving landscape of wealth management and encourages listeners to take control of their financial futures with informed strategies.
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60-40 Portfolio Is Outdated
- The 60-40 portfolio allocates 60% to stocks and 40% to bonds for risk-adjusted returns.
- It's failing now because stocks and bonds have become highly correlated, increasing risk and reducing gains.
Yale Model Outperforms 60-40
- David Swenson's Yale Model uses private, uncorrelated assets to reduce volatility and boost returns.
- His model earned 13.1% compounded versus 8.8% for 60-40 portfolios over 35 years.
Alts Accessibility Changed in 2012
- Regulatory changes in 2012 made private alternative investments widely accessible to accredited investors.
- This shift created a surge in retail demand for alternative assets previously limited to institutions.
