How Much In Risky Vs. Safe Assets?
Chapter 6 of The Rational Investor
The rational investor is now available in print and eBook here.
Paid subscribers can get a free digital copy of the book here.
If you enjoy the book or my writing, please consider leaving a review on Amazon.
The perfect investment portfolio is the one with the highest returns that you can stay invested in.
You must understand the two components of that sentence. First, Maximize investment return while at the same time minimizing the odds that you’ll sell your investments—either by necessity or by choice— prematurely.
Investment returns and risk are tied at the hip; higher returns, by definition, require you to take on more risk. The kneejerk reaction would be to conclude that you should load up on risky assets like stocks.