The Importance of Protecting What You Need and Risking What You Can | AWM Insights #143

In markets, risk and return go hand in hand. The more risk you can take with your portfolio, and the more time you can leave money invested in markets that generate a risk premium, the higher your expected return will be.

Even through periods like the dot com bubble and the Great Recession, long-term risk exposure was not punished, it was actually rewarded if you stayed invested through all the chaos. If too much of your money is exposed to risk and markets hit a period of turbulence, there may be a loss of capital, but expertise in management can shield you from these times of market turmoil.

It may sound very simple, but the process of properly thinking through your priorities and figuring out what you need now, and what you can do without until later, ends up generating a great deal of wealth over your investment life cycle and keeps any market hiccups from interrupting your day to day life.

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Episode Highlights

• 0:00 Intro
• 1:03 How do we evaluate the news and updated financial data?
• 3:23 Are all trends important and what are we looking for?
• 4:21 Differences between evaluating data as it relates to public and private markets
• 6:00 How we use your general financial structure to create building blocks that enable you to seek outsized returns in the private markets
• 7:37 Thinking through your most important factors and goals, and using those to properly tailor your portfolio
• 9:13 Matching your priorities with assets that help you achieve your goals, and also achieve the highest expected returns 
• 10:45 How your savings and discipline early on in your career can lead to the best chances of achieving exceptional returns
• 12:09 Protect what you need and risk what you can
• 12:40 Text us!