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Are You Taking Enough Aspirational Risk?
Manage episode 444387495 series 3234219
Why we need distinct risk buckets: balancing our natural loss aversion with the allure of opportunities that offer the potential for massive upside.
Topics covered include:
- What is modern portfolio theory, and what are some of its flaws
- Why so many people have gotten wealthy by being undiversified
- How to balance personal risk, market risk, and aspirational risk
- How prospect theory explains our attraction to positively skewed opportunities
- Why most people won't get wealthy unless they take some aspirational risk
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Show Notes
Average, Median, Top 1%, and all United States Net Worth Percentiles—DQYDJ
Related Episodes
82: Unlocking the Power of Positive Skewness: Strategies for Investing, Business, and Creativity
460: Should You Be Invested 100% in Stocks Before and During Retirement? A Recent Study Says Yes.
421: Beware of Survivorship Bias When Investing
Investing Rule One: Avoid Ruin
229: Stop Maximizing Your Returns Using Modern Portfolio Theory
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
516 епізодів
Manage episode 444387495 series 3234219
Why we need distinct risk buckets: balancing our natural loss aversion with the allure of opportunities that offer the potential for massive upside.
Topics covered include:
- What is modern portfolio theory, and what are some of its flaws
- Why so many people have gotten wealthy by being undiversified
- How to balance personal risk, market risk, and aspirational risk
- How prospect theory explains our attraction to positively skewed opportunities
- Why most people won't get wealthy unless they take some aspirational risk
Sponsors
Delete Me – Use code David20 to get 20% off
Insiders Guide Email Newsletter
Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter
Our Premium Products
Show Notes
Average, Median, Top 1%, and all United States Net Worth Percentiles—DQYDJ
Related Episodes
82: Unlocking the Power of Positive Skewness: Strategies for Investing, Business, and Creativity
460: Should You Be Invested 100% in Stocks Before and During Retirement? A Recent Study Says Yes.
421: Beware of Survivorship Bias When Investing
Investing Rule One: Avoid Ruin
229: Stop Maximizing Your Returns Using Modern Portfolio Theory
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
516 епізодів
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