#229 Why modern portfolio theory is a defective way to build out an investment portfolio. This episode explains a better approach to asset allocation.
For show notes and more information on this episode click here).
- [0:11] What is modern portfolio theory?
- [4:29] There are many downfalls to relying on this theory while investing
- [7:05] We should prepare for the worst possible outcome when investing, not the average positive outcome
- [14:08] The true goal of investing should be about “minimizing your maximum regret in the meta-game”
- [18:34] There isn’t the best “right answer” with your portfolio
- [25:15] Maximization of anything doesn’t work in today’s environment
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