Stop Maximizing Your Returns Using Modern Portfolio Theory

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5+ y ago 29:56

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#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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