Episode 059: Dr. William F. Sharpe, host Jon Luskin
Bogleheads On Investing Podcast
Balance Risk by Adjusting Asset Allocation
Investors who differ from the average, whether through portfolio size or trading activity, should tailor their investment strategies to reflect their unique circumstances, moving away from strict market cap weighting. Risk management involves a nuanced approach, as real-world conditions do not support the assumption that borrowing and lending occur at identical rates. Instead of solely leveraging a single market portfolio, investors should consider varying their proportions of stocks and bonds to manage risk effectively. This aligns with the fundamental principle of investing: achieving an appropriate risk level by adjusting asset allocation to foster a balanced portfolio.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
