Are You Taking Enough Aspirational Risk?

Are You Taking Enough Aspirational Risk?

Why we need distinct risk buckets: balancing our natural loss aversion with the allure of opportunities that offer the potential for massive upside.

Topics covered include:

  • What is modern portfolio theory, and what are some of its flaws
  • Why so many people have gotten wealthy by being undiversified
  • How to balance personal risk, market risk, and aspirational risk
  • How prospect theory explains our attraction to positively skewed opportunities
  • Why most people won't get wealthy unless they take some aspirational risk


Sponsors

NetSuite

Delete Me – Use code David20 to get 20% off

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus


Show Notes

Portfolio Selection by Harry Markowitz—The Journal of Finance, Vol. 7, No. 1. (Mar., 1952), pp. 77-91

Safety First and the Holding of Assets by A. D. Roy—Econometrica, Vol. 20, No. 3 (Jul., 1952), pp. 431-449

The Misbehavior of Markets: A Fractal View of Financial Turbulence by Benoit Mandelbrot and Richard L. Hudson—Hachette Book Group

Beyond Markowitz: A Comprehensive Wealth Allocation Framework for Individual Investors by Ashvin B. Chhabra—The Journal of Wealth Managment, Vol. 7, No. 4, pp 8-34, Spring 2005

The Wealth of Households: 2021: Current Population Reports by Briana Sullivan, Donald Hays, and Neil Bennett—Census.gov

Average, Median, Top 1%, and all United States Net Worth Percentiles—DQYDJ

PROSPECT THEORY AND STOCK MARKET ANOMALIES by Nicholas C. Barberis, Lawrence J. Jin, and Baolian Wang—NBER WORKING PAPER SERIES

Related Episodes

82: Unlocking the Power of Positive Skewness: Strategies for Investing, Business, and Creativity

460: Should You Be Invested 100% in Stocks Before and During Retirement? A Recent Study Says Yes.

421: Beware of Survivorship Bias When Investing

Investing Rule One: Avoid Ruin

229: Stop Maximizing Your Returns Using Modern Portfolio Theory


See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Jaksot(571)

Will AI Wipe Out Half of White Collar Jobs or Is There an AI Bubble?

Will AI Wipe Out Half of White Collar Jobs or Is There an AI Bubble?

We explore the compelling questions surrounding artificial intelligence. Will AI create more new jobs than it destroys? Is AI already destroying jobs? Are we seeing overinvestment in companies and inf...

16 Heinä 202523min

Mining and the Global Race for Critical Minerals with Kinterra Capital

Mining and the Global Race for Critical Minerals with Kinterra Capital

How the investing landscape is being reshaped by the global race for critical minerals.Topics covered in this conversation between FEG's Greg Dowling and private equity firm Kinterra Capital's co-foun...

9 Heinä 202545min

Are Robo Advisors Worth It Even With Tax Loss Harvesting and Direct Indexing?

Are Robo Advisors Worth It Even With Tax Loss Harvesting and Direct Indexing?

We examine how robo-advisors have evolved over the past decade to determine if their services justify the fees they charge.Topics covered include:How large are the top 5 robo-advisorsRobo-advisor fees...

25 Kesä 202523min

Climbing the Wealth Ladder with Nick Maggiulli

Climbing the Wealth Ladder with Nick Maggiulli

How our spending, investing, and life strategy change as our net worth grows. We consider how skill, luck, discipline, relationships, and AI can allow us to ascend and, in some cases, descend the weal...

18 Kesä 202537min

Stablecoins and CBDCs: Their Rise, Risks and Possibilities

Stablecoins and CBDCs: Their Rise, Risks and Possibilities

Circle Invest, one of the leading stablecoin providers, just went public, and its stock price has tripled. We delve into the growth of stablecoins, their applications, and the associated risks. We als...

11 Kesä 202527min

The Future of Power: Energy at a Crossroads with Scott Harland

The Future of Power: Energy at a Crossroads with Scott Harland

From wildfires to AI-driven demand surges, the power grid is under pressure—and so is the investment landscape around it. Scott Harland of Rockland Capital visits with Greg Dowling of FEG to explore t...

4 Kesä 202540min

No More AAA - What the U.S. Debt Downgrade Means for Investors

No More AAA - What the U.S. Debt Downgrade Means for Investors

With longer-term U.S. interest rates rising and no plan to reduce the budget deficit, is a U.S. national debt crisis imminent?Topics covered include:Why S&P, Fitch, and now Moody's stripped the U.S. o...

21 Touko 202524min

Facing a Financial Squeeze: What Harvard’s Response Can Teach the Rest of Us

Facing a Financial Squeeze: What Harvard’s Response Can Teach the Rest of Us

How can we apply the same emergency measures that Harvard and other universities are using to navigate a financial crisis? Also, how universities invest their endowments and what their performance has...

14 Touko 202525min

Suosittua kategoriassa Liike-elämä ja talous

sijotuskasti
mimmit-sijoittaa
psykopodiaa-podcast
rss-rahapodi
ostan-asuntoja-podcast
rss-rahamania
herrasmieshakkerit
rahapuhetta
rss-laakispodi
rss-sisalto-kuntoon
rss-sami-miettinen-neuvottelija
leadcast
rss-lahtijat
rss-bisnesta-bebeja
rss-seuraava-potilas
sijoituspodi
rss-karon-grilli
rss-juurisyy-johtamisesta-kilpailuetua
rss-draivi
rss-johtoajatuksia