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What rational investor sees the loss of 100% a limited downside? By the same logic any rational investor should own some Tesla stock: hide potential upside in
by fierarul 6y ago
What rational investor sees the loss of 100% a limited downside?
By the same logic any rational investor should own some Tesla stock: hide potential upside in battery tech going forward and "limited" downside.
Problem is at least one of these options has some fundamentals.
- insert_coin 6y agoIf $1000 is 1% of your portfolio it is only a 1% loss, which is less than nominal inflation.
- fierarul 6y agoI think you're getting somewhere but in terms of risk allocation. It may be optimal, overall, to allocate a small portion to high risk assets in case of a big payout. But... I think in many ways BitCoin has passed that point. There is never going to be another 100x growth. Time to find the next thing.
- ralfd 6y agoThere are option positions with _unlimited_ downside: https://www.investopedia.com/ask/answers/050115/what-types-options-positions-create-unlimited-liability.asp https://www.investopedia.com/ask/answers/050115/what-types-o...