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How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market
Manage episode 379494069 series 2137790
Our allocation to risky assets should vary based on the expected return, volatility, risk aversion, and how much we can earn risk-free. That means we should be taking less risk right now. Listen to learn why.
Topics covered include:
- Why there are so few billionaires
- Why the hedge fund Long Term Capital Management imploded
- Why how much to invest is more important than where to invest
- How the Merton share formula can assist with determining what percent of our wealth to invest in risky assets
- Why are expected outcomes so much greater than the median outcome and why it matters to our investing
Sponsors
Delete Me - Use code David20 to get 20% off - To get 20% off Delete Me go to https://joindeleteme.com/david20 and use Code David20
Masterworks – invest in contemporary art
Masterworks Disclosure:
“net IRR” refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the sale date. IRR may not be indicative of Masterworks paintings not yet sold, and past performance is not indicative of future results. See important Reg A disclosures: Masterworks.com/cd
Insiders Guide Email Newsletter
Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.
Show Notes
How to avoid a common investment mistake - Buttonwood - The Economist
The Missing Billionaires: A Guide to Better Financial Decisions by Victor Haghani and James White
Money For the Rest of Us List of Most Influential Books
Charles Feeney, Who Made a Fortune and Then Gave It Away, Dies at 92 - New York Times
Elm Partners Coin Flip Exercise
Evaluating gambles using dynamics - O. Peters and M. Gell-Mann
Related Content
250: Investing Rule One - Avoid Ruin
Why You Should Rebalance Your Portfolio
196: How to Survive Financially
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
527 episoder
Manage episode 379494069 series 2137790
Our allocation to risky assets should vary based on the expected return, volatility, risk aversion, and how much we can earn risk-free. That means we should be taking less risk right now. Listen to learn why.
Topics covered include:
- Why there are so few billionaires
- Why the hedge fund Long Term Capital Management imploded
- Why how much to invest is more important than where to invest
- How the Merton share formula can assist with determining what percent of our wealth to invest in risky assets
- Why are expected outcomes so much greater than the median outcome and why it matters to our investing
Sponsors
Delete Me - Use code David20 to get 20% off - To get 20% off Delete Me go to https://joindeleteme.com/david20 and use Code David20
Masterworks – invest in contemporary art
Masterworks Disclosure:
“net IRR” refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the sale date. IRR may not be indicative of Masterworks paintings not yet sold, and past performance is not indicative of future results. See important Reg A disclosures: Masterworks.com/cd
Insiders Guide Email Newsletter
Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.
Show Notes
How to avoid a common investment mistake - Buttonwood - The Economist
The Missing Billionaires: A Guide to Better Financial Decisions by Victor Haghani and James White
Money For the Rest of Us List of Most Influential Books
Charles Feeney, Who Made a Fortune and Then Gave It Away, Dies at 92 - New York Times
Elm Partners Coin Flip Exercise
Evaluating gambles using dynamics - O. Peters and M. Gell-Mann
Related Content
250: Investing Rule One - Avoid Ruin
Why You Should Rebalance Your Portfolio
196: How to Survive Financially
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
527 episoder
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