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Shelling Out: The Origins of Money
Why and how was money it invented? In this long piece, Nick Szabo provides historical evidence.
3 hours ago by lindberg
The barbell investment strategy
Better than the Investopedia article. Read Taleb's work Incerto. Neither offer exact advice on what to invest in.

"Building a barbell portfolio, you slap on weights of extremely safe investments on one end and extremely risky ones on the other end. The safe investments carry with them virtually no risk of ruin. They are robust. Even in the face of Black Swans. The aggressive risk-seeking side of the portfolio opens it up to unlimited or sheer unlimited upside. Through this barbell approach, it is possible to build a portfolio that thrives under a variety of circumstances, including extreme ones."

"Middle of the road type investments offering medium risk and return should be religiously avoided according to Taleb. These types of investments typically rely on extrapolating current returns a number of years into the future. Generally, the investment case relies on predicting a certain growth rate or return. When something unexpected happens like an accounting scandal or a disaster, you take a huge loss on these types of investments.

Extremely risky assets are usually known to be extremely risky so they are priced by the market with the expectation of loss of principal as a real possibility. The problem with the middle of the road investments is they are sometimes priced as if loss of principal isn't really a possibility. When it does happen due to an unforeseen Black Swan type of event, results are disastrous. When the Black Swan doesn't strike, you aren't really compensated for the risk you were exposed to in the meantime."

"A common misunderstanding of Taleb's work is he's advocating 90% short-term treasuries on one side and OTM options on the other side and bet on freak outcomes. He literally says: acquire optionality without paying for it"

"Overstock is a prime example of a barbelled business": retail business that invests in crypto
investing  finance  advice 
8 hours ago by dandv
How Much Should You Have Saved at Every Age?
Fidelity suggests having your yearly income saved at 30, three times your income at 40, seven times your income at 55, and 10 times your income at 67. It uses your salary as a metric in order to “simplify your planning, and help you determine if you are on track throughout your working life.”

Morgan Stanley, too, subscribes to this rule of thumb, suggesting three times your salary at 40, six times at 50, eight times at 60, and 10 times by 67.
lifehacker  finance  pension  retirement 
14 hours ago by photoangell
Best Personal Finance Services 2018 - Software
Need to make sense of your entire budget or even just get a better handle on your monthly household spending? One of these top-rated apps can help.
finance  business  budgeting  online  2018 
18 hours ago by cyberchucktx

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