The Mind Money Spectrum Podcast

#44. Don't let too much of a good thing leave you in financial ruin.

October 13, 2020 Aaron Agte and Trishul Patel Season 1 Episode 44
The Mind Money Spectrum Podcast
#44. Don't let too much of a good thing leave you in financial ruin.
Chapters
The Mind Money Spectrum Podcast
#44. Don't let too much of a good thing leave you in financial ruin.
Oct 13, 2020 Season 1 Episode 44
Aaron Agte and Trishul Patel

In this episode, Aaron and Trishul discuss concentration risk and when it might be acceptable to take it on. If you have the willingness, ability, and need, increasing your concentration risk may be a way to pursue wealth maximization over the greater probability of achieving a specific goal. But do understand that behavior and emotion can come into play when deciding whether to diversify. Even if you hold a globally diversified portfolio of stocks and bonds, or if you are sitting in cash, you might already have excessive concentration through your place of employment. So, in the end, consider employing a robust decision-making process to help you determine the appropriate level of risk that makes the most sense for your situation.

Episode References

MMS - #2. Buying stocks can be fun, but don't fall into these common traps.
MMS - #41. What does academia have to say about what really works when investing in stocks?
MMS - #42. Investment strategies evolve, but is your portfolio stuck in a foregone era?
MMS - #43. Is your asset allocation putting your retirement at risk?
Graystone Advisor - RSUs
Graystone Advisor - Netflix employee stock options
Graystone Advisor - Appropriate asset allocation for different goals
Investing Forever - Why invest in one thing over another?
Investing Forever - Efficient Market Hypothesis
Investing Forever - Risk, Everywhere
Investing Forever - Why buy-and-hold can save you big
Investing Forever - Passive is the new aggressive
Steve Jobs - Most of His Wealth Actually Came From Disney, Not Apple
Callan Periodic Table of Investment Returns
How is the Value of the S&P 500 calculated?

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

In this episode, Aaron and Trishul discuss concentration risk and when it might be acceptable to take it on. If you have the willingness, ability, and need, increasing your concentration risk may be a way to pursue wealth maximization over the greater probability of achieving a specific goal. But do understand that behavior and emotion can come into play when deciding whether to diversify. Even if you hold a globally diversified portfolio of stocks and bonds, or if you are sitting in cash, you might already have excessive concentration through your place of employment. So, in the end, consider employing a robust decision-making process to help you determine the appropriate level of risk that makes the most sense for your situation.

Episode References

MMS - #2. Buying stocks can be fun, but don't fall into these common traps.
MMS - #41. What does academia have to say about what really works when investing in stocks?
MMS - #42. Investment strategies evolve, but is your portfolio stuck in a foregone era?
MMS - #43. Is your asset allocation putting your retirement at risk?
Graystone Advisor - RSUs
Graystone Advisor - Netflix employee stock options
Graystone Advisor - Appropriate asset allocation for different goals
Investing Forever - Why invest in one thing over another?
Investing Forever - Efficient Market Hypothesis
Investing Forever - Risk, Everywhere
Investing Forever - Why buy-and-hold can save you big
Investing Forever - Passive is the new aggressive
Steve Jobs - Most of His Wealth Actually Came From Disney, Not Apple
Callan Periodic Table of Investment Returns
How is the Value of the S&P 500 calculated?

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.