Wright's Law: each time production of something doubles, costs fall by a consistent percentage.

Perplexity innovating at intersection of investing and AI:

Volatility is often talked about as a negative in investing. But it’s interesting to split out upside volatility from downside volatility. Having a high upside volatility is not a bad thing—it means that returns were sporadic on the upside from big up months. Of course, targeting

Investing twitter is a massive melting pot of ideas.

There is no actual state of being wrong. Because by the time you realize you’re wrong, you’re right (Seth Klarman talking the book “being wrong” that he recommends all investors read).

The single best way to have staying power when investing is to be well diversified across asset classes (i.e., own a mix of stocks, hedge funds, private equity, crypto, etc.). If you feel the urge to have more exposure to a specific asset class, just overlay futures and options —

Optimal diversification requires allocating to assets and strategies that behave differently amid general market fluctuations.

By allocating to high-returning strategies that show little correlation to stocks, investors reduce risk without the sacrificing growth.

Investment risk can never be eliminated—only mitigated via diversification.

Percent allocation to "uncorrelated assets" (hedge funds, cash, bonds) is one of the most important metrics when constructing a portfolio. Uncorrelated assets are what protect a portfolio when markets crash. Swensen approach targets at least 30% uncorrelated assets.

Diversification remains the most enduring principle in investing. Geographic diversification, like diversification across asset classes (stocks, hedge funds, private equity), is a core feature of building resilient, long-term wealth.

Over the past decade, the S&P 500 has returned an average of 15% annually, far in excess of its long-term annualized return of 10.3%.

Investors are increasingly using alternative assets to help achieve their investment objectives and diversify portfolio risk.

JP Morgan talking all things hedge funds. One interesting takeaway was that individual investors can actually benefit *more* than institutions by incorporating hedge funds. (This is because individuals are often much less diversified, so hedge funds can really move the needle

Cholesterol is not the demon we were led to believe

Why do multi-billion-dollar family offices and institutions hire specialist managers? Because optimal diversification spans every asset class and market. Trying to master everything from Brazilian equities, to Japanese private equity, to nuclear energy in-house isn’t just

Picture this: Two assets. Same expected return. Same expected volatility. Zero correlation. Put them together in a portfolio and—wala—risk drops without diluting expected return. That’s the quiet superpower of diversification.

Michael Steinhardt, one of the greatest hedge fund managers ever, allocated much of his own capital to 40+ external hedge fund managers. The best investors outsource. They diversify. You don’t have to go at it alone..