The Long View Victor Haghani: Lessons From the Missing Billionaires
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Apr 2, 2024 Victor Haghani, co-author of The Missing Billionaires, delves into optimal wealth allocation, retirement spending strategies, and the impact of leverage on investment returns. He shares insights on navigating low expected returns and emphasizes the importance of making wise financial decisions for a fulfilling life.
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Where Are The Missing Billionaires
- The near-absence of multi-generational billionaires signals systemic failures in preserving extreme wealth across generations.
- Subtle, persistent poor financial decisions rather than ostentatious consumption likely explain this disappearance.
Make Position Size A First-Order Decision
- Think about position size as carefully as asset choice and personalize it to your risk tolerance.
- Avoid generic allocations; calibrate sizing using your subsistence needs, risk aversion, and expected returns.
Why The Merton Share Stayed Academic
- The Merton share gives an analytical rule for optimal risky-asset exposure but stayed academic due to complexity and competing finance breakthroughs.
- Expected-utility language also intimidated practitioners, limiting practical adoption.