Sept 16, 2012- The All Weather Portfolio and Principles from Ray Dalio

 

 

Please read more  here: http://www.businessinsider.com/ray-dalio-average-investor-portfolio-2012-9

Key Points Taken from Mr. Ray Dalio:

1.) You should have a strategic asset allocation mix that assumes that you don’t know what the future is going to hold.

2.) Do not dollar weight, but balance the position size in terms of risk.

3.) There are two main drivers of asset class returns – inflation and growth.

4.) Have an all-weather portfolio. Don’t have a concentration in an asset class that will ruin you. Since you don’t know which will annihilate you, you have to be well diversified.

 

For all intents and purposes, if you’re a serious trader/investor and you don’t even know who Mr. Ray Dalio is, kindly wikipedia him, as he’s one of the world’s largest and most profitable hedgefund manager alive.

– Faceless Trader

 

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