# Bootcamp #3 | How to Choose the Right Portfolio (Returns, Risk & Diversification)

Page: https://stenobird.com/podcast/sound-investing-342834/bootcamp-3-how-to-choose-the-right-portfolio-returns-risk-diversification
Text version: https://stenobird.com/podcast/sound-investing-342834/bootcamp-3-how-to-choose-the-right-portfolio-returns-risk-diversification.md
Podcast: [Sound Investing](https://stenobird.com/podcast/sound-investing-342834)
Published: 2026-02-18T18:29:01+00:00
Episode link: https://podcasters.spotify.com/pod/show/sound-investing/episodes/Bootcamp-3--How-to-Choose-the-Right-Portfolio-Returns--Risk--Diversification-e3f922e
Audio file: https://anchor.fm/s/10bb8090/podcast/play/115688974/https%3A%2F%2Fd3ctxlq1ktw2nl.cloudfront.net%2Fstaging%2F2026-1-18%2Fbe68ffe2-8edc-af3a-fa21-eb784c2b591e.m4a
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JSON: https://stenobird.com/v1/public/podcasts/sound-investing-342834/episodes/bootcamp-3-how-to-choose-the-right-portfolio-returns-risk-diversification
Duration seconds: 2791

## Resource

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 u…

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