The Importance of Risk Tolerance in Retirement

The more skittish you are, the lower your stock allocation should be. Warren Buffett has 20% of Berkshire in key bills and cash equivalents. That's how he gets richer. The assets that you want to stay away from is anything with a marginal burn rate over 5%.

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On today’s episode of The Long View podcast, we welcome back William Bernstein. This is Bill’s third appearance on the podcast. In fact, he was our very first guest back when we started The Long View in 2019. Bill is a neurologist turned investment advisor. He is also the author of several books, including The Intelligent Asset Allocator, The Four Pillars of Investing, If You Can: How Millennials Can Get Rich Slowly, and The Delusion of Crowds. Bill has just come out with a new edition of The Four Pillars of Investing. So, we wanted to have him on to discuss the new book and what’s changed since that book’s original publication more than 20 years ago.

Background

Bio

The Four Pillars of Investing, Second Edition

The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk

If You Can: How Millennials Can Get Rich Slowly

The Delusion of Crowds: Why People Go Mad in Groups

“Bernstein: ‘I Don’t Think the System Needs Nudges. I Think the System Needs Dynamite,’” The Long View podcast, Morningstar.com, May 7, 2019.

“Bill Bernstein: We’re Starting to See all of the Signs of a Bubble,” The Long View podcast, Morningstar.com, March 10, 2021.

The Four Pillars of Investing

Robert Kaplan

Who Is Charlie Munger?

Antti Ilmanen