TIP558: How Ackman & Taleb Profited Billions During Market Crashes w/ Scott Patterson
We Study Billionaires - The Investor’s Podcast Network
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Preserve Capital, Maximize Potential
Risk management strategies focus on preserving investor capital rather than speculating on market direction. A prevalent approach involves allocating a small portion of capital to less volatile funds while dedicating the majority to high-growth investments like the S&P 500. This method contrasts with traditional models, like the 60-40 stock-bond allocation, which have underperformed recently but attempted to balance risk and reward. While the latter offers some protection against downturns, it limits upside potential in bullish markets. Effective risk management is about preparing for rough market periods while striving to capture market growth during favorable conditions.
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