Two Quants and a Financial Planner

Timeless Investing Lessons | Breaking Down Corey Hoffstein's 15 Lessons from 15 Years Managing Money

Jun 10, 2024

Finance expert Corey Hoffstein shares 15 timeless investing lessons, discussing risk transformation, diversification in portfolios and relationships, 'havzies' concept, barbell portfolios, and the limitations of past performance. The hosts explore practical applications of these lessons in investing and financial planning.

54:26

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Corey Hoffstein

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Quick takeaways

Risk is transformed, not destroyed, emphasizing the necessity of risk understanding in investment planning.

Enduring discomfort often leads to significant rewards, highlighting the importance of embracing challenges for long-term gains in various aspects of life.

Diversifying is crucial not only in investing but also in life decisions, showcasing the value of balancing various factors for better outcomes.

Specific signals hold value primarily in extreme scenarios, cautioning against the reliance on signals without considering their relevance in critical situations.

Deep dives

Risk Transformation in Investing and Planning

Risk cannot be destroyed, only transformed. Applying this concept to investment planning, the discussion highlights the significance of understanding that risk does not vanish but gets shifted. Insights are drawn from scenarios such as using insurance to transfer risk in financial planning and adjusting portfolio strategies to manage potential risk.

Importance of Considering Correlations in Diversification

00:30

Consider Unintended Bets in Life

00:35

The Past as a Single Sample Draw

00:28

Intro

2min

Transforming Risk in Investing and Financial Planning

12min

Diversifying Cheap Betas and Avoiding Expensive Alphas

4min

Exploring the Importance and Complexities of Diversification in Various Aspects of Life

3min

Navigating Diversification in Relationships and Portfolios

25min

Navigating Uncertainty with 'Havzies'

5min

Reflections on Barbell Portfolios, Temptations of Donuts, and the Infinite Possibilities of Past Performance

4min

In this episode of Two Quants and a Financial Planner, we dive into Corey Hoffstein's insightful list of "15 Ideas, Frameworks and Lessons from 15 Years." We explore several key concepts, such as the transformation of risk, the necessity of pain to achieve premiums, and the philosophical limits of diversification. Through a mix of investing and real-life examples, we discuss how these ideas can be applied to both portfolio management and personal decision-making. Join us as we break down Hoffstein's thought-provoking lessons and share our own experiences in navigating the complex world of investing and financial planning.

We hope you enjoy the discussion.

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