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Talmud Portfolio

Apr 10, 2007 – Sep 23, 2026, Rebalanced annually

Backtest it
Talmud PortfolioS&P 500
Final balance$35,320$75,807
CAGR6.70%10.97%
Max drawdown−44.03%−55.19%
Sharpe ratio0.520.63

Allocation

  • VTIUS total stock market33.34%
  • VNQUS real estate33.33%
  • BNDUS total bond market33.33%

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Growth of $10,000

  • Talmud Portfolio
  • S&P 500

Metrics

ReturnTalmud PortfolioS&P 500
Final balance$35,320$75,807
Total return253.20%658.07%
CAGR6.70%10.97%
Calendar yearsTalmud PortfolioS&P 500
Best year22.81%32.31%
Worst year−22.37%−36.80%
Positive years15 of 1815 of 18
RiskTalmud PortfolioS&P 500
Max drawdown−44.03%−55.19%
Longest drawdown3 years4.9 years
Volatility (annualized)14.65%19.64%
Risk-adjustedTalmud PortfolioS&P 500
Sharpe ratio0.520.63
Sortino ratio0.730.89
Calmar ratio0.150.20

Worst drawdowns

DeclinePeakBottomRecovered
−44.0%Oct 2007Mar 2009Oct 2010
−26.5%Feb 2020Mar 2020Nov 2020
−24.5%Dec 2021Oct 2022Aug 2024
−13.3%Jul 2011Oct 2011Jan 2012
−11.8%Nov 2024Apr 2025Jul 2025

Annual returns

YearTalmud PortfolioS&P 500
2007*−4.19%+2.57%
2008−22.37%−36.80%
2009+20.89%+26.35%
2010+17.34%+15.06%
2011+5.84%+1.89%
2012+12.34%+15.99%
2013+11.22%+32.31%
2014+16.26%+13.46%
2015+1.12%+1.23%
2016+7.97%+12.00%
2017+10.04%+21.71%
2018−3.72%−4.57%
2019+22.81%+31.22%
2020+8.06%+18.33%
2021+21.45%+28.73%
2022−19.63%−18.18%
2023+14.52%+26.18%
2024+10.00%+24.89%
2025+9.14%+17.72%
2026*+5.69%+13.47%

* Partial year

About the Talmud Portfolio

The Talmud advises keeping a third of your wealth in land, a third in business and a third in reserve. Roger Gibson opens his book Asset Allocation: Balancing Financial Risk with that line.

Here land is real estate (REITs), business is US stocks and reserve is bonds, as Gibson read it.

The Talmud Portfolio returned 6.7% a year from Apr 2007 to Sep 2026, against 11.0% for the S&P 500. Its biggest drop was 44.0%, against 55.2% for the S&P 500. It took 3 years to recover. It beat the S&P 500 in 5 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 three funds have prices. The S&P 500 is SPY.

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