There are only a few overall principles that help you to make good decisions in investing. In the InvestBasics series, I will outline my current curation of factors to learn and watch.
Portfolio Building
Scrap all the traditional ideas of 60/40, a diversified ETF Portfolio. Once you decide to put in the time to build experience for potential outperformance, this is the core principle you will follow:
High conviction, High Risk/Reward ideas, and themes that are ideally uncorrelated to each other.
Adding any other position that does not fit this definition will just dilute your portfolio and future returns.
„It’s Crazy to Put Money in Your Twentieth Choice Rather Than Your First Choice“
Charlie Tian „Invest Like a Guru.“
I will let Ray Dalio explain the rest…
Seems simple, but actually there are only a few fund Investors worldwide that try to execute this principle to its full potential.
One of the people or funds to follow is: John Burbank of Passport Capital
