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Why YOU Have an Advantage as a Small Investor with Brian Feroldi

The Personal Finance Podcast

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Individual Investor Advantages and Cash Allocation Strategies

This chapter explores the benefits individual investors have over large fund managers, focusing on making contrarian investment decisions and maintaining a cash allocation strategy in a higher interest rate environment. The speaker shares their approach of keeping six months' worth of cash for emergencies and having a 10 percent cash position in their investment portfolio to seize market opportunities. It also touches on long-term stock holdings, psychological challenges in investing, and the importance of studying market history for better investing decisions.

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