The traditional notion that private investments are risky and public investments are safe is evolving. Previously, private equity, venture capital, and hedge funds were deemed risky while publicly traded stocks were seen as safe. However, the landscape is shifting with a new perspective. The speaker highlights the concentration of risk in the S&P 500, with 10 stocks representing a significant portion and trading at high Price-to-Earnings ratios. This challenges the notion of public investments being inherently safe. The speaker notes that the distinction between public and private investments is blurring, emphasizing that liquidity, not the classification, determines risk. High net worth individuals and institutional investors are encouraged to consider the trade-off between liquidity and compensation for less liquidity. The speaker advises assessing the need for immediate liquidity and structuring portfolios to accommodate less liquid investments prudently.

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