The best lazy portfolio is the one set up in line with your risk tolerance and rebalance regularly. In investing, there’s no one right way to invest or manage your portfolio. In fact, there are hundreds of different approaches, and probably more.
Consider the active portfolio managers, they all have their own ideas about how to get the highest returns for their particular strategies. Then there are the hedge funds, clamoring for alpha from creative investment strategies. Finally, the market timers think they will outsmart the indexes and know how to invest at the bottom and get out at the top.
In most cases, your best lazy portfolio will outperform all those other fancy approaches. If you don’t believe me, then check out Mark Hulbert, William Bernstein, and scores of other well regarded investors and researchers.
Hey, even Warren Buffett, one of the greatest investors of all time, believes in a lazy portfolio.
This post originally appeared at Barbara Friedberg Personal Finance.