The Risk of Ruin in Life

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The average outcome is you are five-sixths alive. But it's impossible to predict when an individual is going to die. And in fact, your outcome of just picking ten random companies is likely to be quite disparate from the outcome of buying an index fund. A lot of this is also related to fractal mathematics in models like what we would call the sand pile or rice pile model. If you're doing base jumping and other such activities that are highly likely to result in death at some point, if you do them enough. You're going to die."

In this episode we answer questions from MyContactInfo, Anonymous and Arun. We discuss a podcast and article about the concept of Ergodicity and how to apply it, a variation of the Golden Ratio portfolio from one of our listeners recently discussed in an interview, and the illusory benefits of dividend-paying stocks and related delusions.

And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional links:

EconTalk Podcast on Ergodicity: Luca Dellanna on Risk, Ruin, and Ergodicity | EconTalk

Taylor Pearson Article on Ergodicity: Ergodicity: A Simple Explanation of Ergodic vs. Non-Ergodic (taylorpearson.me)

Picture Perfect Portfolios Article about a Golden Ratio-style portfolio and others: 100% Factor Focused Equities vs Diversification Reigns Supreme (pictureperfectportfolios.com)

Three Ben Felix Videos About the Irrelevance of Dividends:

The Irrelevance of Dividends - YouTube

The Relevance of Dividend Irrelevance - YouTube

Dividend Growth Investing - YouTube

Intel's 2023 Dividend Cut:

Intel cuts dividend to lowest since 2007 to save cash | Reuters

Intel slashes dividend by over 65%, to 12.5 cents (cnbc.com)