Couch Potato Portfolio
Dec 5, 2003 – Nov 12, 2026, Rebalanced annually, TIP starts Dec 5, 2003
| Final balance | CAGR | Max drawdown | Sharpe ratio | |
|---|---|---|---|---|
| Couch Potato | $52,188 | +7.47% | −30.59% | 0.83 |
| S&P 500 | $107,795 | +10.92% | −55.19% | 0.65 |
| Final balance | CAGR | Max drawdown | Sharpe ratio | |
|---|---|---|---|---|
| Couch Potato | $52,188 | +7.47% | −30.59% | 0.83 |
| S&P 500 | $107,795 | +10.92% | −55.19% | 0.65 |
| Couch Potato | S&P 500 | |
|---|---|---|
| Final balance | $52,188 | $107,795 |
| CAGR | +7.47% | +10.92% |
| Max drawdown | −30.59% | −55.19% |
| Sharpe ratio | 0.83 | 0.65 |
Loading the growth chart…
Growth of $10,000
Key metrics
| Return | Couch Potato | S&P 500 |
|---|---|---|
| Final balance | $52,188 | $107,795 |
| Total return | +421.88% | +977.95% |
| CAGR | +7.47% | +10.92% |
| Calendar years | Couch Potato | S&P 500 |
|---|---|---|
| Best year | +19.51% | +32.31% |
| Worst year | −18.76% | −36.80% |
| Positive years | 18 of 22 | 19 of 22 |
| Risk | Couch Potato | S&P 500 |
|---|---|---|
| Max drawdown | −30.59% | −55.19% |
| Longest drawdown | 2.2 years | 4.9 years |
| Volatility (daily, annualized) | 9.19% | 18.59% |
| Risk-adjusted | Couch Potato | S&P 500 |
|---|---|---|
| Sharpe ratio | 0.83 | 0.65 |
| Sortino ratio | 1.17 | 0.92 |
| Calmar ratio | 0.24 | 0.20 |
Annual returns
| Year | Couch Potato | S&P 500 |
|---|---|---|
| 2017 | +12.07% | +21.71% |
| 2018 | −3.33% | −4.57% |
| 2019 | +19.51% | +31.22% |
| 2020 | +15.96% | +18.33% |
| 2021 | +15.68% | +28.73% |
| 2022 | −15.89% | −18.18% |
| 2023 | +14.93% | +26.18% |
| 2024 | +12.73% | +24.89% |
| 2025 | +11.93% | +17.72% |
| 2026 to Nov 12 | +5.41% | +11.89% |
Worst drawdowns
| Decline | Peak | Bottom | Recovered | Length |
|---|---|---|---|---|
| −30.6% | May 2008 | Mar 2009 | Apr 2010 | 1.9 years |
| −19.7% | Feb 2020 | Mar 2020 | Jul 2020 | 5 months |
| −19.6% | Dec 2021 | Sep 2022 | Mar 2024 | 2.2 years |
| −11.1% | Aug 2018 | Dec 2018 | Apr 2019 | 7 months |
| −9.2% | Feb 2025 | Apr 2025 | Jun 2025 | 4 months |
About the Couch Potato Portfolio
Scott Burns introduced the Couch Potato in the Dallas Morning News in 1991, as half stocks and half bonds. He later offered a version with inflation-protected Treasuries (TIPS) as the bond half. This page uses that one.
Two funds and a yearly rebalance are the whole plan, little enough work for a couch potato.
Its worst fall took 1.9 years to recover, and it beat the S&P 500 in 5 of 22 full years.
Daily closes with dividends reinvested and fund fees included, before taxes and trading costs.