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> So, what does a young person do these days? Barbell investing from Taleb makes the most sense to me. Cap your downside, go balls out with the rest. And prio
by Swizec 4y ago
> So, what does a young person do these days?
Barbell investing from Taleb makes the most sense to me. Cap your downside, go balls out with the rest.
And prioritize long-term assets over cashflow. Revenue generating assets are best.
- throwaway894345 4y ago> Cap your downside, go balls out with the rest. This doesn’t mean anything to me. Can you elaborate? Also, why are revenue generating assets better, and doesn’t pursuing revenue generating assets imply prioritizing cash flow? Sorry for the noob questions.
- Swizec 4y ago> This doesn’t mean anything to me. Can you elaborate? Taleb elaborates better in his very accessible book(s). The basic idea is to invest/use most of your net worth in “safe” investments, those primarily keeping up with inflation or just barely beating it. If shit hits the fan, you have a cushion to fall back on. Anything beyond keeping you safe and comfortable enough should go chasing the highest returns possible. So you can partake in as much upside as possible. Startup comp follows this logic. Enough salary to fund your life and basic savings, equity to chase high upside. Revenue generating assets are nice because you don’t just need to sell for a higher price to make a return. They have intrinsic value. For example owning a profitable business or a rental property.
- throwaway894345 4y agoThanks for the explanation. That was very concise and accessible!
- epups 4y agoCan you recommend a specific book that discusses this in the context of private investors? I have read a couple of books from Taleb and he only talks about similar strategies for investment firms.