Nassim Taleb has an interesting story from Antifragile that correlates uniquely to investing strategies. The passage is as follows: “And one blatant denial of convexity bias is the theory about the benefits of the so-called Cretan (or Mediterranean) diet that triggered a change in the eating habits of the U.S enlightened class, away from steak…
Month: May 2019
Why Market Index Investing Works
Why does market index investing work so well? Most say it’s because you can’t beat the market over the long run, so why try. That nonsense. Index investing works by automatically “rebalancing” multiple assets, and by rebalancing more frequently, you can easily beat the market. Let’s investigate further. The Components I’m going to use the…