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Podcast: Wealth Formula Podcast
Episode: 250: Infinite Fleet! An Asymmetric Risk Play?
Description: Nassim Taleb, author of the Black Swan, extrapolates his theories on unpredictable events by suggesting that perhaps the ideal way to allocate your capital is by focusing on the extremes. He says that perhaps the ideal portfolio is one where there is extreme safety on the one hand—US Treasuries for example—and extreme risk and upside on the other. The idea is that you put the money you absolutely need away in a place that is as close to impenetrable as it gets. The other portion of your portfolio would go only to extremely risky but also potentially extremely prof...