We Study Billionaires - The Investor’s Podcast Network TIP382: Investing Mastermind Q3 2021
Sep 26, 2021
Tobias Carlisle, founder of Acquirers Fund and deep value investing expert, Jake Taylor from Farnam Street Investments, and Dr. Wes Gray, a quantitative investing specialist, dive into the holy grail of investing. They discuss the importance of diversification across uncorrelated assets, the impact of passive investing, and the psychological discipline needed for success. The trio critiques commission-free trading platforms like Robinhood, exploring their risks and implications for novice investors, while emphasizing the role of trends and unique strategies in today’s market.
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Holy Grail of Investing
- Ray Dalio's "holy grail" of investing involves 15-20 uncorrelated return streams.
- This approach reduces risk without sacrificing potential returns, unlike traditional diversification within a single asset class.
Diversification Strategy
- Diversify your investments for long-term growth, especially as you age.
- Early on, concentrate on investments you understand, but diversify later.
Asset Classes
- Traditional portfolio theory assumes stable leverage and correlations, which is unrealistic.
- There are two main asset classes: short volatility (wins in stable times) and long volatility (wins in crises).
