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94%... unbelievable. I have to assume these billionaires have access to someone with familiarity with modern portfolio theory (or someone who has heard the word
by tschwimmer 4y ago
94%... unbelievable. I have to assume these billionaires have access to someone with familiarity with modern portfolio theory (or someone who has heard the word 'diversification' and has functional internet connection) so one has to conclude that he intentionally decided derisking. Pretty wild...
- thaumasiotes 4y ago> I have to assume these billionaires have access to someone with familiarity with modern portfolio theory (or someone who has heard the word 'diversification' and has functional internet connection) He is one of those people. The article notes he was a Jane Street trader.
- s5300 4y agoDidn’t listen to enough Wu-Tang Though, I guess Wu is for the children, so SBF was unfortunately too old for their sage advice
- fshbbdssbbgdd 4y agoWhen most of your wealth is in funny money that you printed, diversifying is easier said than done.
- ALittleLight 4y agoI wouldn't diversify if I were in his position. If my wealth dropped from X billion to Y hundred million - so? I'm still living a life of luxury. I'd much rather be All In on the main venture and not have the distraction of money and money management.
- rippercushions 4y agoDumping your money into three-fund Boglehead portfolio and HODLing it requires approximately zero management or distraction.
- KptMarchewa 4y agoDumping isn't hard problem here, liquidating is.
- deleted 4y ago[deleted]
- usednet 4y agoHe’s not an idiot, it was just functionally impossible for him to liquidate his positions without nuking their values.