Money For the Rest of Us11 Okt 2023

How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market

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

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Masterworks Disclosure:

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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

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Why You Should Rebalance Your Portfolio

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