Ikar 1896 Posted July 23, 2022 Author Share Posted July 23, 2022 17 hours ago, Amphibian220 said: Do they discuss the barbell strategy of investment? Investing 90 per cent into the safest possible instrument and the 1-10 % of savings into highly risky venture capital. I read in one contemporary finance book that “medium” risk is a misnomer because of how volatile the markets are by their current nature, so it only makes sense to put most of your money into the safest bet and a small fraction into a business that given your intelligence has potential for major growth. It makes even more sense to work for that venture capital firm because your motivation will be greater. It depends what you define as the "safest possible instrument". The safest way for me to grow my money over the long run are stocks, though bonds might perform better at the moment. I'm 24, so I have a shot for a very long investment horizon. I also don't want to trade - guess, if a single stock goes up or down in the next week, month or year. I did that with Forex and it didn't work. Now I just set the order and buy the whole market index once a month, as my salary arrives. I have a cushion to deal with unexpected expenses or unemployment, so I am covered on both ends. And if the world as a whole goes to the shitter, then I am happy for whatever army training I remember and my gunnery hobby 😄 Link to comment Share on other sites More sharing options...
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