4 ms·

I suggest taking a look at the dragon portfolio https://taylorpearson.me/thedragon/ https://taylorpearson.me/thedragon/ The basic idea is that you create a ba

I suggest taking a look at the dragon portfolio https://taylorpearson.me/thedragon/ https://taylorpearson.me/thedragon/ The basic idea is that you create a balanced portfolio of assets that are negatively correlated with each other so that, over a very long time horizon , your wealth retains its value even in the face of uncertainty, black swan events, and volatility. An example would be owning an equal proportion of stock, cash, bitcoin, gold, fixed income, commodities, and volatility. (Harder for the average person to get exposure to commodities and volatility - but I think bitcoin checks those boxes). Edit: include original paper that describes the portfolio by Christopher Cole: https://docsend.com/view/taygkbn https://docsend.com/view/taygkbn

neural_thing 6y ago
At least link the original paper! Christopher Cole is wicked smart, deserves attribution. https://docsend.com/view/taygkbn https://docsend.com/view/taygkbn
themodelplumber 6y ago
Why so risk-averse in the big picture? Just skimming for now, it seems like this could easily lock a person out of huge gains made by e.g. actively trading during a dynamic market event. Which is weird because there are really effective ways to cover risks during such periods as well, only they aren't nearly as deadly to one's overall profit. It seems like one of the selling points must be "set and forget," which makes me wonder if the target audience is just people who don't want to actively learn about a thing, but would rather take someone else's word.
- hckrnrd 6y ago
  A bit more context around “really effective ways to cover risk” would be helpful. Are you referring to derivatives such as covered calls on stocks you already own? Or collecting premium by selling naked puts?
- shard 6y ago
  For someone interested in learning about how to cover risk while taking during a dynamic market event, what would you recommend? My investment education pretty much stopped at "A Random Walk Down Wall Street".
atentaten 6y ago
Isn't this simply another name for diversification?
- random32840 6y ago
  Yes, but it's branded to sell you products and ignores differences in each item's volatility & leverage.
walshemj 6y ago
This is what wealth preservation trusts like Personal Assets, RIT, Brunner and Caledonian do (all listed in London).

neural_thing 6y ago

At least link the original paper! Christopher Cole is wicked smart, deserves attribution. https://docsend.com/view/taygkbn https://docsend.com/view/taygkbn

themodelplumber 6y ago

Why so risk-averse in the big picture? Just skimming for now, it seems like this could easily lock a person out of huge gains made by e.g. actively trading during a dynamic market event. Which is weird because there are really effective ways to cover risks during such periods as well, only they aren't nearly as deadly to one's overall profit. It seems like one of the selling points must be "set and forget," which makes me wonder if the target audience is just people who don't want to actively learn about a thing, but would rather take someone else's word.

hckrnrd 6y ago
A bit more context around “really effective ways to cover risk” would be helpful. Are you referring to derivatives such as covered calls on stocks you already own? Or collecting premium by selling naked puts?
shard 6y ago
For someone interested in learning about how to cover risk while taking during a dynamic market event, what would you recommend? My investment education pretty much stopped at "A Random Walk Down Wall Street".

atentaten 6y ago

Isn't this simply another name for diversification?

random32840 6y ago
Yes, but it's branded to sell you products and ignores differences in each item's volatility & leverage.

walshemj 6y ago

This is what wealth preservation trusts like Personal Assets, RIT, Brunner and Caledonian do (all listed in London).