Sublime

On the ‘safe’ side, I have some cash for liquidity and emergencies, with the rest of my portfolio invested in the cheapest, broadly diversified index funds I can buy. I don’t try to pick hot stocks, and will never make more (or less) than the average market return. I’ll be holding this portfolio through thick and thin for the next several decades,

Public markets reward predictability.

The Employee Benefit Research Institute (EBRI) found that 60% of those surveyed felt they’d be able to save enough for a comfortable retirement but that only 41% of those surveyed had ever tried to calculate how much money they’d actually need for a comfortable retirement.

rational agents, why don't all of them invest in stocks? Why are low-yield bonds so popular? In 1995, the behavioral economists Richard Thaler and Shlomo Benartzi realized that the key to solving the premium equity puzzle was loss aversion. Investors buy bonds because they hate losing money, and bonds are a safe bet. Instead of making financial

Academic finance is devoted to finding the mathematically optimal investment strategies. My own theory is that, in the real world, people do not want the mathematically optimal strategy. They want the strategy that maximizes for how well they sleep at night.

Hyperbolic discounting, a phenomenon studied by behavioral economists, helps explain why this happens: we tend to undervalue long-term investments, while accurately valuing immediate benefits. Yet a longitudinal study by Stanford University researchers revealed that to be a risky approach; the decisions you make regarding how you build the team and