Coffeehouse Portfolio
Apr 10, 2007 – Sep 23, 2026, Rebalanced annually
| Final balance | CAGR | Max drawdown | Sharpe ratio | |
|---|---|---|---|---|
| Coffeehouse | $33,114 | 6.35% | −37.69% | 0.56 |
| S&P 500 | $75,807 | 10.97% | −55.19% | 0.63 |
| Coffeehouse | S&P 500 | |
|---|---|---|
| Final balance | $33,114 | $75,807 |
| CAGR | 6.35% | 10.97% |
| Max drawdown | −37.69% | −55.19% |
| Sharpe ratio | 0.56 | 0.63 |
Allocation
- VVUS large-cap10%
- VTVUS large-cap value10%
- IJRUS small-cap10%
- IJSUS small-cap value10%
- VEUInternational stocks10%
- VNQUS real estate10%
- BNDUS total bond market40%
Loading the growth chart…
Growth of $10,000
- Coffeehouse
- S&P 500
Metrics
| Return | Coffeehouse | S&P 500 |
|---|---|---|
| Final balance | $33,114 | $75,807 |
| Total return | 231.14% | 658.07% |
| CAGR | 6.35% | 10.97% |
| Calendar years | Coffeehouse | S&P 500 |
| Best year | 18.99% | 32.31% |
| Worst year | −18.64% | −36.80% |
| Positive years | 14 of 18 | 15 of 18 |
| Risk | Coffeehouse | S&P 500 |
| Max drawdown | −37.69% | −55.19% |
| Longest drawdown | 2.7 years | 4.9 years |
| Volatility (annualized) | 12.32% | 19.64% |
| Risk-adjusted | Coffeehouse | S&P 500 |
| Sharpe ratio | 0.56 | 0.63 |
| Sortino ratio | 0.79 | 0.89 |
| Calmar ratio | 0.17 | 0.20 |
| Return | Coffeehouse | S&P 500 |
|---|---|---|
| Final balance | $33,114 | $75,807 |
| Total return | 231.14% | 658.07% |
| CAGR | 6.35% | 10.97% |
| Calendar years | Coffeehouse | S&P 500 |
| Best year | 18.99% | 32.31% |
| Worst year | −18.64% | −36.80% |
| Positive years | 14 of 18 | 15 of 18 |
| Risk | Coffeehouse | S&P 500 |
|---|---|---|
| Max drawdown | −37.69% | −55.19% |
| Longest drawdown | 2.7 years | 4.9 years |
| Volatility (annualized) | 12.32% | 19.64% |
| Risk-adjusted | Coffeehouse | S&P 500 |
| Sharpe ratio | 0.56 | 0.63 |
| Sortino ratio | 0.79 | 0.89 |
| Calmar ratio | 0.17 | 0.20 |
Worst drawdowns
| Decline | Peak | Bottom | Recovered |
|---|---|---|---|
| −37.7% | Oct 2007 | Mar 2009 | Apr 2010 |
| −23.6% | Feb 2020 | Mar 2020 | Nov 2020 |
| −20.3% | Nov 2021 | Oct 2022 | Jul 2024 |
| −12.6% | Jul 2011 | Oct 2011 | Jan 2012 |
| −12.1% | Aug 2018 | Dec 2018 | Apr 2019 |
Annual returns
| Year | Coffeehouse | S&P 500 |
|---|---|---|
| 2007* | −0.15% | +2.57% |
| 2008 | −18.64% | −36.80% |
| 2009 | +17.78% | +26.35% |
| 2010 | +14.68% | +15.06% |
| 2011 | +2.80% | +1.89% |
| 2012 | +11.42% | +15.99% |
| 2013 | +15.45% | +32.31% |
| 2014 | +8.91% | +13.46% |
| 2015 | −0.91% | +1.23% |
| 2016 | +11.02% | +12.00% |
| 2017 | +11.19% | +21.71% |
| 2018 | −5.10% | −4.57% |
| 2019 | +18.99% | +31.22% |
| 2020 | +7.46% | +18.33% |
| 2021 | +15.24% | +28.73% |
| 2022 | −14.38% | −18.18% |
| 2023 | +11.76% | +26.18% |
| 2024 | +7.31% | +24.89% |
| 2025 | +10.97% | +17.72% |
| 2026* | +7.51% | +13.47% |
* Partial year
About the Coffeehouse Portfolio
Bill Schultheis wrote The Coffeehouse Investor in 1998 and started suggesting this portfolio a year later. His advice is to save, spread the money across low-cost index funds and ignore Wall Street.
It puts 40% in bonds. The other 60% is split equally between US large, large value, small and small value stocks, international stocks and real estate.
The Coffeehouse Portfolio returned 6.3% a year from Apr 2007 to Sep 2026, against 11.0% for the S&P 500. Its biggest drop was 37.7%, against 55.2% for the S&P 500. It took 2.5 years to recover. It beat the S&P 500 in 3 of 18 full years.
Uses daily closing prices with dividends reinvested. Fund fees are included, but not taxes or trading costs. The backtest starts on Apr 10, 2007, the first day all seven funds have prices. The S&P 500 is SPY.
Other portfolios
Core Four
Rick Ferri's portfolio, 48% US stocks, 24% international stocks, 20% bonds, 8% real estate.
- VTI48%
- VEU24%
- VNQ8%
- BND20%
No-Brainer
William Bernstein's portfolio, 25% each in large US stocks, small US stocks, foreign stocks and short-term bonds.
- SPY25%
- IWM25%
- EFA25%
- SHY25%
Three-Fund
The Bogleheads' portfolio, here 42% US stocks, 40% bonds, 18% international stocks.
- VTI42%
- VEU18%
- BND40%