How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market

Our allocation to risky assets should vary based on the expected return, volatility, risk aversion, and how much we can earn risk-free. That means we should be taking less risk right now. Listen to learn why. Topics covered include:Why there are so few billionairesWhy the hedge fund Long Term Capital Management implodedWhy how much to invest is more important than where to investHow the Merton share formula can assist with determining what percent of our wealth to invest in risky assetsWhy are expected outcomes so much greater than the median outcome and why it matters to our investing Sponsors Delete Me - Use code David20 to get 20% off - To get 20% off Delete Me go to https://joindeleteme.com/david20 and use Code David20 Masterworks – invest in contemporary art Masterworks Disclosure: “net IRR” refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the sale date. IRR may not be indicative of Masterworks paintings not yet sold, and past performance is not indicative of future results. See important Reg A disclosures: Masterworks.com/cd  Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter. Show Notes How to avoid a common investment mistake - Buttonwood - The Economist The Missing Billionaires: A Guide to Better Financial Decisions by Victor Haghani and James White Money For the Rest of Us List of Most Influential Books Charles Feeney, Who Made a Fortune and Then Gave It Away, Dies at 92 - New York Times Elm Partners Coin Flip Exercise Evaluating gambles using dynamics - O. Peters and M. Gell-Mann Related Content 250: Investing Rule One - Avoid Ruin Why You Should Rebalance Your Portfolio 196: How to Survive Financially See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.