WWII 083: How to Allocate Capital to Your Investment Ideas
Main Topic: How to allocate your capital across investment ideas
This podcast episode is part of a series about portfolio management and covers the topic of capital allocation on which I wrote an extensive blog post.
The different aspects of capital allocation covered include:
- Using Opportunity Cost to drive investment decisions
- Understanding major demographic and economic trends
- Prioritizing the largest margin of safety
- Cash position
- Various investment strategies / types
Ask JB: What happens in bidding wars, and can I time the market?
submitted 15 hours ago by Gawd_Awful
JB SAYS: You are talking about a rumor about other suitors. There is no guarantee that another bidder will actually make a bid. You have a gain already in your options thanks to Amazon. The share price is actually above the $42 that has been offered, so it’s as if another bidder has already showed up. Is it worth holding on to in that case?
submitted 1 day ago by mominapan
JB Says: You are talking about market timing again. You are forty and have 25 years until retirement. As long as you do not need the money for at least five years, stay invested. I always recommend 30% in cash, so at least have that much available, but leave the rest invested. What if we don’t have a bear market?
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