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Keeping it Simple on the Road | Ep.6: Endeavoring to Diversify

Keeping it Simple with Simplify Asset Management

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The Right Tail Risk in Equity Portfolios

In a 250-stock portfolio, assuming something that looks like individual weighting, I can lose four basis points basically, 40 basis points in any individual name. So it can't be that big of a downside risk. Is the risk on the other side? Is it actually the right tail risk that you're experiencing that on? so is it missing Nvidia, for example? Well, I mean, so I think that's, it's that type of thing that will play a role.

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