Bootcamp #3 | How to Choose the Right Portfolio (Returns, Risk & Diversification)
About This Episode
Welcome to Bootcamp #3 of the Sound Investing Series with Paul Merriman — where real investing data meets practical long-term strategy. 📈 In this session, Paul breaks down the performance of diversified portfolios vs. the S&P 500 using decades of historical data going back to 1970. You’ll learn how different combinations of equity asset classes have performed in good markets, bad markets, and everything in between.
📊 What You’ll Learn in This Video:
• A deep dive into the Sound Investing Portfolios
and how they work for DIY investors
• Historical returns of 2-, 4- and multi-fund strategies compared to the S&P 500
• Why diversification matters and how it can reduce risk and improve returns
• How different portfolios performed in tough decades like the 1970s and 2000s
• Practical takeaways for long-term investors, retirees, and those choosing equity allocations
Whether you’re a beginner or experienced investor, this Bootcamp episode gives you real numbers and evidence-based insights to help shape your portfolio strategy with confidence.
💡 Topics Covered:
✔ Sound Investing Portfolios explained
✔ Risk vs. return comparison
✔ Historical performance of diversified portfolios
✔ The role of small-cap & value stocks
✔ Why a 2-fund strategy can compete with the S&P 500
✔ How to think about risk in real market conditions
🔗 Useful Resources & Tables - https://www.paulmerriman.com/sound-investing-portfolios-2026
To follow along with the charts, tables, and data Paul references during the presentation, check the pinned links and video notes.
📈 Perfect For:
✔ DIY investors
✔ Retirement planners
✔ Anyone curious about portfolio diversification
✔ Investors who want to avoid common mistakes
📩 Questions? Paul encourages you to leave comments and reach out — he often uses viewer questions in future episodes!
➡️ Don’t forget to subscribe for more deep-dive investing education and future Bootcamp episodes from the Merriman Financial Education Foundation: Paul Merriman’s mission is to help you make more money with less risk and more peace of mind.