diversification

1. 3 June 2022

   Every asset class has bad years, even bonds

   Bonds have been performing terribly, yet I still call them defensive assets. Every asset class has bad years; regression to the mean is real; bond losses remain smaller than share losses; and your cap…

2. 28 May 2021

   Active investment is great! Just pick the right domain

   Investing actively is great. By this, I'm talking about putting your time, energy, talents, knowledge, and expertise into how you invest. On the other hand, investing passively is great too. It really…

3. 17 April 2020

   Investing in a business can make you rich. It can also make you poor.

   For most of my clients I recommend widely-diversified, low-fee index funds. They're steady, sensible, and almost no one gets really rich from them. Investing in a business is one of the few things tha…

4. 11 June 2017

   How to be lucky

   We can organise our lives to make good luck more likely and bad luck less costly. Invert the standard risk-management moves — eliminate, reduce, transfer, retain — and you get a framework for opportun…