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2/ Discussion & thoughts on finding 10 to 20 bets that are uncorrelated so that you increase the amount of expected return per every unit of risk you take. Most of you go on and look at stocks, bonds REITs and commodities and stop there.
3/ The way I would recommend to find uncorrelated correctly priced investments (good deals) is to look in different regions of the world, in different asset classes and different sub-sectors of those asset classes....
4/ ...but also focus on liquid as well as illiquid opportunities, some might be publicly listed and others could be privately held.
Don't just limit yourself to the stock exchange. Majority of the time, the way market algos operate, correlations turn to 1 during sell-offs!
Don't just limit yourself to the stock exchange. Majority of the time, the way market algos operate, correlations turn to 1 during sell-offs!
5/ Also, find the right kind of strategies & tilts to focus on within those opportunities. Some of your investments might be momentum based & others could be value-based.
6/ Some could be short term holding period (trading stocks / flipping real estate) and other longer-term (portfolio buy & hold).
Also, do not limit yourself to just one way of doing things. Think and look outside of the box at both equity form & in debt form.
Also, do not limit yourself to just one way of doing things. Think and look outside of the box at both equity form & in debt form.
7/ Create multiple sources of investment income and passive income in the form of short term gains, long term capital price rise, forced real estate appreciation, dividend income, interest income, royalties from private equity businesses and rental income from property.
8/ The more truly uncorrelated assets you add to your portfolio, that are both liquid or illiquid and scattered all around the world, and are income producing, the less risk you are actually taking to achieve a rate of return which your peers don't even think is possible.
9/ All while you dramatically increase your profitability and decrease the probability of a losing year.
Diversification only starts with stocks & bonds. While it's enough for some, why settle there?
While not create a properly diversified & thoroughly risk balanced portfolio?
Diversification only starts with stocks & bonds. While it's enough for some, why settle there?
While not create a properly diversified & thoroughly risk balanced portfolio?
