PRPFX

1985 to 2025

Permanent Portfolio Fund 

S&P 500 Total Return

$769,371

11.47% average annualized return

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Permanent Portfolio (PRPFX)

$340,823

9.22% average annualized return

DYI:  The premise of this blog is outperformance of the Permanent Portfolio fund while at the same time holding onto the significantly lower drawdowns than the S&P 500.  While attempting to garner ¾ plus of the long term return on a portfolio that is 100% in stocks.  High enough return to achieve our financial goals and (to repeat) significantly lower drawdowns during bear markets.

To illustrate:  The biggest drawdown for the Permanent Portfolio (PRPFX)** was 27.16%, which occurred from May 2008 to November 2008 (or peaking around November 20, 2008).  However it took only 1.4 years (or 221 trading sessions) to recover its previous high.

The S&P 500 greatest drawdown: -56.8% (peak-to-trough drop from October 9, 2007, to March 9, 2009) requiring 5 years and 5 months regaining its previous peak; highlighting the significant difference.

Following DYI’s blog you would have learned that stock valuations during that massive drawdown for stocks were in the bargain range*.  Those with additional dollars to invest would have been loading up on stocks and when the upside turns reducing that break even time period.

People talk the talk of being that “long term investor” but when the manure hits that rotating fan the vast majority will run to the hills locking in large percentage losses.

Till Next Time

*My blog didn’t start until 2014 which of course is after the market smash of 2009.  However I hope you get my point regarding valuations.

**I have zero involvement with the Permanent Portfolio Fund group other than liking the fund and owning shares myself.  The same goes for Vanguard Group of Funds advocated in this blog.