How I Manage My Own Money in Uncertain Times, with John Butler

Описание: Can you increase the returns of your investment portfolio, without increasing its risk?

Most will tell you it’s impossible. After all, more return inherently means more risk.

But 30 years ago, John Butler helped lead a revolution in the world of finance. By applying ideas recently pioneered in academia, a group of investment bankers were able to create portfolios of investments that generated higher returns for lower risk.

How?

Well, nobody would argue you can eat the ingredients of goulash separately and achieve the same result as when they are combined…

It’s the same with your portfolio. If you want to create the best possible concoction, you need to consider how the pieces combine.

By analysing the relationship between different combinations of assets, rather than their merits in isolation, a portfolio can become greater than the sum of its parts.

As the academic who pioneered these ideas put it, “diversification is the only free lunch in investing.”

But these days, the finance sector has completely misunderstood Harry Markowitz’s insight. “Diversification” has come to mean passive investing and index investing. A strategy of deliberate ignorance – that’s why I call it “passive aggressive investing”.

In this video, John Butler takes us through how to construct portfolios that really do generate higher returns for less risk by using deliberate forms of diversification. He calls it risk-weighted optimisation. And it could be the key to squeezing more returns out of your portfolio, without having to put up with more risk.

Hear more from John Butler at Investor’s Daily http://bit.ly/4iNWNPR where he shares his insights on the markets for free. Also check out John’s report "The Long Overdue Rise of Britain’s Magnificent 7" where he reveals why the US market's decade-long dominance is ending – and how 7 overlooked UK champions are perfectly positioned for an historic comeback, visit: https://bit.ly/4bRKCz7

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