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25iQuiz: What is a barbell portfolio?

BMO Capital Markets: "We believe a barbell approach to equity investing is warranted with high quality growth exposure on the aggressive side and high quality dividend-paying stocks on the defensive side." bloomberg.com/graphics/2020-…

Avoid:
"The basic idea of the barbell strategy is that the portfolio is divided into two parts: an extremely conservative portfolio for safety, and a highly speculative portfolio for extra rewards with extra risk." advisorperspectives.com/articles/2017/…

The Taleb paper is: fooledbyrandomness.com/barbell.pdf
Assume you own a large amount of a highly appreciated technology stock (e.g., AAPL) and potentially have more based on stock options (i.e., you work at Apple).

What other types of stocks would you buy to create a barbell portfolio?

Is this barbell portfolio a "proxy hedge"?
Some people own AAPL and AAPL options based on employment. They must deal with that hand they are dealt. This situation might call for one type of barbell. Another type of barbell would be VC on one side and US treasuries on another.

Taleb:
"[I used a barbell] to describe ... playing it safe in some areas (robust to negative Black Swans) and taking a lot of small risks in others (open to positive Black Swans) achieving antifragility....To make profits and buy a BMW, it would be a good idea to, first, survive." NT
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Tren Griffin
@trengriffin
25iQ 25iq.com/2017/07/15/ama…
25iQ 25iq.com/2016/12/31/a-h…
CAC: 25iq.com/2016/12/09/why…
Churn: 25iq.com/2017/01/27/eve…
GM: 25iq.com/2017/02/04/gro…
Gurley abovethecrowd.com/2015/02/25/inv…
Skok: forentrepreneurs.com/ltv/
Theta Equity: thetaequity.com

"25iQ + term" in search engine.
If an investor or business person is willing to do the work it is possible to create an analytical edge by knowing the difference between: (1) GAAP earnings; and (2) actual shareholder value. When this work is done successfully, the fact that people are lazy is arbitraged.
Even if you never own a share of stock in a public company, this idea about focusing on actual shareholder value is applicable to every business. You can't ignore GAAP income and it can be useful, but you can also arbitrage other people not understanding its limitations.

Munger
Read 3 tweets
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Tren Griffin
@trengriffin
X writes a free blog post about asset allocation. X's opportunity cost is $500 an hour. The post takes 6 hours to write, generates 10k readers and two new wealth management customers.

What's CPM?

What's CAC for the gross customer additions?

Is X his or her own influencer?
X devotes 1k hours to writing a book on asset allocation. 50k copies are sold at $25 a copy. X generates 100 new wealth management clients due to writing that book. His opportunity cost is $500 an hour (eg one alternative is more vacation).

What is CAC?

google.com/amp/s/25iq.com…
2/ Power law distribution as in another form of content:

"If you sell 20,000 to 25,000 books that would be seen by most publishers as a phenomenal number. In a study of 1,000 business books released in 2009, just 62 of them sold more than 5,000 copies." awealthofcommonsense.com/2020/01/the-fu…
Read 3 tweets
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Tren Griffin
@trengriffin
1/ "Gross margin was the defining characteristic of successful IPOs, and direct listings certainly made a splash last year." tomtunguz.com/the-health-of-…

I've written about the benefits of high gross margins. 25iq.com/2017/02/04/gro… But below the gross margin line costs can kill too
2/ "Investors deployed $117B in 2019 up from $106B in 2018. This market has grown 20% over the last five years. Q4 2019 saw meaningful dip from Q3, but it's too early to say whether it's an aberration, or the beginning of a longer-term trend."
3/ Compare the size of the VC-based funding market to the size of bond markets and you can see why people say VC punches above its weight:

"In 2018, the total amount of U.S. investment-grade debt increased by about 3% to $6.7 trillion as of Jan. 1, 2019" spglobal.com/en/research-in…
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abhilash
@kabhilash02
Hello everyone,
Initially, I had no intention of writing this note.
Before we continue...I hope everyone understands that we do not provide any advisory
services. All information is only for educational
purpose and not investment advice.
(1)
2) Nifty from its all-time high of around 12000 has only come down to somewhere around 10800,
correction of only about 10%.
I strongly believe market movements of less than 20% do not even deserve a comment.
3) When people say, “ There is blood on the streets, why don’t you comment on the market ?”
All I can think of replying is, “There is no blood on the street, there might be blood only in your
portfolio :p ”. Because you might have bought a lot of small-cap at a PE ratio of 100.
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Shyam Sekhar
@shyamsek
If a person cares to get the right advice early in his #investing journey, outcomes will be far superior.

Where outcomes are poor or ordinary, the quality of #advice is the most likely cause.

Investors unduly worry about returns, even when quality of investing is decent. 1/5
Every step of my #investing journey, I received #GoodAdvice & #value everything I was taught. To this day, I seek constantly advice from the wiser. What I get, I freely give. As I learn, I teach. I rarely forget what was taught from day1, though my early Gurus are no more. 2/5
The early years are crucial. Starting with virtually nothing, we need to get #GoodAdvice, wise counsel & emotional support. From a few 1000s to one's first Lakh is the toughest part. From a lakh to a million is not easy either. Scale must be carefully sought. Most fail here. 3/5
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David Jensen
@RealDavidJensen
@Halsrethink @RemainSovereign @TFMetals @BullionStar @jameshenryand @michaellebowitz @dlacalle_IA @DA_Stockman @RonPaul @RonPaulInstitut @MarkTOByrne @MarkYusko @ErikSTownsend @AndrewBellBNN @realDonaldTrump @LouDobbs @Varneyco @MariaBartiromo @gatewaypundit @JeffSnider_AIP @TruthGundlach @epomboy @PaulCraigRobert @LanceRoberts @TheBubbleBubble @POTUS @TayTayLLP @ronanmanly @jimiuorio @MoneyMetals @stranahan BRICS nations for years openly discussing trade w/ "parallel" monetary system including gold trade settlement.
Saudi put in place RippleNet alt. to SWIFT that allows bank-to-bank real-time settlement in any medium of trade.
Italy signalling ready to go.
@Halsrethink @RemainSovereign @TFMetals @BullionStar @jameshenryand @michaellebowitz @dlacalle_IA @DA_Stockman @RonPaul @RonPaulInstitut @MarkTOByrne @MarkYusko @ErikSTownsend @AndrewBellBNN @realDonaldTrump @LouDobbs @Varneyco @MariaBartiromo @gatewaypundit @JeffSnider_AIP @TruthGundlach @epomboy @PaulCraigRobert @LanceRoberts @TheBubbleBubble @POTUS @TayTayLLP @ronanmanly @jimiuorio @MoneyMetals @stranahan More to the point - #gold seems to be the focal point of new trade settlement system.

“Fiat money, in extremis, is accepted by nobody. Gold is always accepted." Alan Greenspan.

realnoevremya.com/articles/2075-…
@Halsrethink @RemainSovereign @TFMetals @BullionStar @jameshenryand @michaellebowitz @dlacalle_IA @DA_Stockman @RonPaul @RonPaulInstitut @MarkTOByrne @MarkYusko @ErikSTownsend @AndrewBellBNN @realDonaldTrump @LouDobbs @Varneyco @MariaBartiromo @gatewaypundit @JeffSnider_AIP @TruthGundlach @epomboy @PaulCraigRobert @LanceRoberts @TheBubbleBubble @POTUS @TayTayLLP @ronanmanly @jimiuorio @MoneyMetals @stranahan When a central banker or economist mentions 'stimulus', they are talking about diluting the currency through debt currency issuance - to create REAL GROWTH.

This is the insanity & silly talk promoted by central bankers globally.

Nobody asks the question.

#centralbanking #gold
Read 55 tweets
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Dr Henry
@HenryJOncology
I will now proceed to go on a #tweetrant / #tweetorial with regards to #Pharmaceutical #biotech pricing (focus on #cancer).

Very timely, also see @WSJ wsj.com/articles/big-p… on price hikes.

For the record, no #COI / #FCOI. Feel free to contribute to this discussion.
Lets look at the problem from the @PhRMA / business perspective. And lets suppose you are a wonderful company, started by wonderful people who just want to make the world a better place (I know, not real, but stay with me for a minute).
You start with a great idea / or pipeline platform and start selling this concept to #VC #VentureCapital, and lets assume that this is actually a really good idea. What is the needed return on investment to make this worth while. A: further R&D must exceed the cost of capital.
Read 17 tweets
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Zafar Shaikh
@Zafargs79
#INVESTING

I Had Always Been Mostly #Trader With Dash Of #Investing Thrown In Between When Started Out In World Of Stocks. Last 5 Years Have Been Revelation on Investing Front. I Have Formed My Own Investing Philosophy & it Has Been Hugely Rewarding In Terms Of Strategy ..(1/n)
And The Potential it Holds Out For Future! The Basic Premise For My PhiloSophy is CAGR (Compounded Annual Growth Rate). RJ is RJ Because of Phenomenal 40%+ CAGR Since 80's. So Basically, Achieving High CAGR Over Long Period Of Time is All That Is To Wealth Creation (2/n)
Now For CAGR, Name Of Stocks Don't Matter To Me, Neither What Business They Are In. Obviously, if Fundamentals of Business Are Good, More Investors & Traders Are Going To Back The Price UpTrend, So Fundamentals Are Critical, But Thats Not All There is To Investing (3/n)
Read 13 tweets

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