Interesting read. Diversification is more than it seems from a strictly investment lens. Set aside for the moment those with greater than $1 million in financial assets of any kind. Most of the economic net worth of individuals and households is tied to their human capital. In this light, the role of investment risk to economic wealth is mitigated more than it seems, at least for the masses. Just be careful about investing in your own company's shares and, of course, small businesses with most of the owners wealth tied up in the business have a risk problem to be managed.
It's food for thought if someone who managed that much money says that index funds are the best bet of retail investors.
Interesting read. Diversification is more than it seems from a strictly investment lens. Set aside for the moment those with greater than $1 million in financial assets of any kind. Most of the economic net worth of individuals and households is tied to their human capital. In this light, the role of investment risk to economic wealth is mitigated more than it seems, at least for the masses. Just be careful about investing in your own company's shares and, of course, small businesses with most of the owners wealth tied up in the business have a risk problem to be managed.
Ryan is making good points and the research is clear that advisors cannot consistently beat the market
Great post - very informative! Would definitely like to hear more about the "All weather" strategy.
Thanks!
@Ryan Walsh I should commend this breakdown of Alpha and beta investors. I read from beginning to end, first time in a while I do that.
However, It seems your tone on crypto is very passive. May be that is the void my newsletter provides https://cryptofada.substack.com/