reasoning behind investment benchmark selections

TKG is manging two portfolios, competing against some rock investments over a 9 year biz cycle.

#1, Lundin, owns massive copper reserves.  There have been debt servicing problems around 2007-08.  There is political risk with a Congo mine, but whoever is in power in Congo in a decade will likely want to help Africa procure water pipes, wind turbine alternators, and copper plate hospital equipment.

#2, is a long term USA bond fund.  The USD was a flight to safety even in a USA mortgage-unleashed recession.

#3, is a Wilshire 5000 fund.  It is the USA market.  In CAD it has some Chindia (commodity) exposure as a hedge against USD depreciating.

#4, TAVIX is an international fund managed by a value investor student of W.Buffett.  Hoping for some early-Buffett years, returns.  Easier to find bargains and not indebted (depreciating) nations, abroad.

#5 is GE.  I thought about a pure medical instruments play like Boston Scientific.  Like the aging boomer play.  But USA insurance industry prescribes too many useless tests that place USA physicians at a conflict of interest.  Given USA deficit/debt I can't see this pork continue.  GE has a few segments.  Some TKG doesn't like.  But gets a conglomerate penalty on the bright side.  Tough to find a USA conglomerate without petro exposure.

#6 BRK.b.  Probably the best case study of how to choose wise managers to invest in.  Everyone knows Berkshire Hathaway.

investment benchmarks to outperform

The Keystone Garter (TKG) seeks to outperform common intelligent investment vehicles in Canada and the USA by 1% or 2% per year at least.  A business cycle last around 8 years historically, so TKG will attempt to outperform most or all of these vehicles over a 9 yr period, accounting for taxes and currency exchange flux.  Still working on the details; Canada gives TKG some exposure to the developing world but might be missing out on EU.  The vehicles TKG will compete against while still sneaking SRIs into its portfolios, are:

1. Third Avenue Value Fund.  There are a few of these.  TKG will pick one.  Whitman's wiki CV impresses TKG.  A value investor closer to Graham than Buffett.
2. BRK.b.  W.Buffett founded, a student of Benjamin Graham.  Does not appreciate waiting for deep book value discounts to be realized in price, so prefers historic earnings growth and sound Executives.  Likes brand power.  Has demonstrated the ability to learn from mistakes and has incorporated some SRI into investment philosophy over time.  Holds investments over the long-term to avoid realizing income taxes.  This strategy results in progressively less wealth accrued from newer investments and returns decrease over time (from astronomical levels).
3. 30 year USA Treasury Bonds.  Even in a USA-inspired recession, USD assets are considered a flight to quality...
4. GE.  Diversified conglomerate without big defense exposure (USA in deficit).  TKG isn ot a fan of nuclear power nor finance divisions under 2011 USA laws (Buffett liked the latter in 2009).  Balanced out by medical equipment division and many energy efficient product lines.  Might use Siemens ADR instead.
5. Wilshire 5000 Index.  Most of the USA stock market.
6. Lundin or Hudbay.  Two copper diversified miners without coal or tar exposure.  Lundin was in danger of defaulting in 2008.  Copper is used for water pipes, wind turbine components and is an antimicrobial coating.  Cu appears cheap now.

Ideally these would be one portfolio; the weighting is hard.  Trying to beat 5/6 is simpler.