The Rabbit Hole
#95 Letter to a Friend Who Just Made a lot of Money by Graham Duncan
Jan 9, 2024
The podcast covers advice on managing newfound wealth, investing strategies like the barbell strategy, and the significance of credibility in decision-making. It also discusses the importance of trusting money managers and the criteria for hiring a CIO. The potential fragility of wealth and possessions is analyzed as well.
13:21
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Quick takeaways
- When managing newfound wealth, it is crucial to design an anti-frigile system and avoid the sin of envy.
- To invest effectively, it is important to leverage one's areas of expertise and distribute decision-making space while trusting chosen experts.
Deep dives
Designing an Anti-Fregeal System
When managing newfound wealth, it is important to take one's time and design an anti-fregeal system. This means having a background assumption that there is no hurry and sitting on cash as a default. As Charlie Munger advises, it is crucial to avoid the sin of envy and not care about what others are doing. One can read informative books during this time, such as 'The Aspirational Investor' by Ashvin Chabra and works by Naseem Talib. By employing a barbell strategy that combines low-risk cash investments with high-risk securities, one can limit potential losses while being exposed to substantial upside.
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