How to Invest Like a Weightlifter?
You might be thinking what the heck does investing have to do with weightlifting?
Well, maybe there is an investing strategy that has a name based on weightlifting?
This strategy was popularized by Nassim Nicholas Taleb, and I’ll go over the strategy and how you can apply it if it sounds interesting to you.
The strategy and its history
The strategy was devised by Taleb in the 2000s. His investing performed well when the market started melting down in 2007 and 2008. Other Wall Streeters were losing their minds while he didn’t flinch. He wrote the well-known book, The Black Swan. See this link for more on the strategy and some quotes from Taleb.
In a nutshell, Taleb said to ignore the moderate risk, standard investing techniques and focus on two baskets. He said to ignore the middle ground and focus on the extremes. You’ll have a simple basket of both no-risk and high-risk investments.
The first being very “safe” investments like cash, treasuries and low-risk bonds.
The second basket contains the opposite, focusing on leveraged assets, higher growth, and higher risk assets. These investments include any speculative investment, some 100% stock market funds, and derivatives like stock options.
