“The benefits of diversification have been known for over half a century. In the early 1950s, Harry Markowitz demonstrated that there exists an “optimal” portfolio which has the highest investment return for a given level of risk. For his work, which created the field of modern portfolio theory (“MPT”), Markowitz Read more
The Idea Farm is a newsletter / research database founded by Meb Faber. If you are a long-time reader of this blog, you know how much I love Meb and if you don’t, I strongly suggest you go and check everything that he does. I have a particularly bad relationship Read more
On the 18th of October, WisdomTree (finally!!) listed a UCITS version of their ETF NTSX in Europe. If you are wondering what’s NTSX, you must be new around here. “The ETF is designed to deliver a 90% exposure to large-cap US equities and 60% to US Treasury futures, effectively providing a leveraged, Read more
Personal finance is usually associated with investing. Often with budgeting. Sometimes with taxes. Insurances are a relevant part of the puzzle that is discussed less frequently. As with investing, my understanding of how insurances work, and how they work for me, has changed through time. Here are a few lessons Read more
The title of this post is a sentence Corey Hoffstein said in a recent podcast episode with Meb Faber. Jeeez how much I miss Pirates of Finance. It is a very simple sentence that highlights how, in many cases, finance adages are not that “simple” to adopt. Corey concluded that Read more
If you want to undermine investing, you refer to it as gambling. Risk Of Ruin is a podcast that talks about how you can gamble without gambling. It is all about positive expected value and edges. I love the podcast and I particularly loved the last episode called “You Can’t Read more
Last week I read this FT article about copy trading. I was expecting the routine stories of users that started full of hopes and eventually got rugged: the first part of the piece did not disappoint me. After referring to the usual suspect in this field, eToro, the author mentioned Read more
Weeks ago I read the following post, which hit straight into my soul (I left the original Italian version, you can find the English version straight after): Quante volte negli anni scorsi abbiamo ascoltato o letto che Europa e Stati Uniti si stavano avviando verso la “giapponesizzazione”.Fiumi di parole sulle Read more
In April 2022, I introduced on this blog The Italian Leather Sofa Model Portfolio. As a reminder, here is the portfolio composition: The idea behind the portfolio is stolen from here. The link offers the best explanation to what I think is the most common question related to it, i.e. Read more
I am not sure who my audience is anymore, so I will try to keep this post as generic as possible. If you recognise where the example comes from, kudos to you 🙂 There is an investor with an 80% stocks, 20% bonds portfolio; the stock portion is heavily tilted Read more