investing - Concepts

Explore concepts tagged with "investing"

Total concepts: 8

Concepts

20% Rule - An investment strategy recommending that roughly 20% of a portfolio be allocated to alternative investments uncorrelated with the stock market.
Margin of Safety - Building buffers to protect against uncertainty and errors.
Barbell Strategy - A risk management approach that combines extreme safety on one end with small, high-risk/high-reward bets on the other—avoiding the mediocre middle.
Naive Allocation - Cognitive bias where people divide resources equally among available options regardless of their differing merits or characteristics.
Asymmetric Upside - Decisions where potential gains significantly exceed potential losses, creating favorable risk-reward profiles.
Circle of Competence - Know and stay within the boundaries of what you truly understand.
Past Performance Fallacy - The principle that historical results and past successes do not guarantee or reliably predict future outcomes.
Disposition Effect - The tendency to sell winning investments too early while holding onto losing investments for too long.