We Study Billionaires - The Investor’s Podcast Network TIP328: Balanced Portfolio Allocation - w/ Damien Bisserier & Alex Shahidi (Business Podcast)
Dec 20, 2020
Join financial experts Alex Shahidi, who has over 20 years in investment management, and Damien Bisserier, a former Bridgewater Associates strategist. They delve into balanced portfolio allocation and risk parity, emphasizing its resilience across economic climates. Discover how to create a balanced portfolio that minimizes correlations, learn from billionaire Ray Dalio’s strategies, and rethink traditional investment wisdom for better long-term outcomes. Plus, insights on the importance of constructive feedback in achieving growth!
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Balanced Portfolio Advice
- Seek portfolios balancing risk and reward, emulating billionaires like Ray Dalio.
- Consider risk parity, a strategy emphasizing uncorrelated assets, for optimal structure.
Risk Parity Insight
- Retail investors can incorporate 4-5 uncorrelated return streams, not 15 like Bridgewater.
- Risk parity offers broader diversification than traditional 60/40 portfolios dominated by stocks.
Diversification Insight
- Diversification's true value emerges during crises when correlations shift dramatically.
- Assets like Treasuries, gold, and TIPS can perform well while others decline, offering real protection.