How To Beat The S&P 500 Using Talmudic Wisdom

Published: June 29, 2016



The Babylonian Talmud describes a portfolio recipe (i.e., an asset allocation model) that divides your wealth into three different types of assets.


We use exchange-traded funds to create portfolio recipes based on this Talmudic investment strategy.


The best portfolio recipe returned 8.4% annually over the past 10 years, which beats the S&P 500 and also outperforms a Blended Portfolio of 60% Stocks and 40% Bonds.


The risk of each Talmud portfolio recipe is less than the S&P 500, based on maximum drawdown over the past 10 years.


VizMetrics tracks the ingredients and performance for over 250 dynamic and static portfolio recipes. We're always on the hunt for promising new recipes that could help investors outperform the market. When we find a new recipe, we analyze its risk and return and report the results at In this article we investigate several portfolios based on a passage from the Talmud, a collection of ancient wisdom literature.

Sign up for a FREE Subscription now to continue reading this article.