The basis:
- There are 4 basic scenarios: prosperity, inflation, recession or deflation. You would need assets that do well in each of these to keep a good balance.
- In Prosperity - stocks, to provide a strong return. Bonds will do well as well.
- In Inflation - Gold is the choice (not the only possibility though).
- In Recession - Cash or cash equivalents do well, due to low liquidity in recessions.
- In deflation - Bonds will do great.
We live in a different times as when he lived. I simply dont trust cash that much to have 1/4 of my wealth stored in cash. Maybe few %, but 25% seems like calling bad luck upon yourself. We will enter hyperinflation sooner or latter.