Bridger PenningtonFund Launch & Investment Expert

Making Lots Of Money | Bridger Pennington

18 Jan 2024 · 1 min

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In this brief dialogue, the speakers argue that the key to making substantial money is not relying on a few big bets but embracing diversification. They stress that the unknowns in investing far outweigh what one knows, so understanding one's strengths and knowledge gaps is crucial. By diversifying wisely, an investor can achieve a favorable return relative to risk. The conversation highlights that investment funds naturally provide broad diversification across asset classes, making them an effective tool for managing uncertainty and risk.

Chapters

A lot of people think that the way you make a lot of money is to come up with the best single or few bets. That's wrong. That approach to the game will knock you out of the game. You'll have one terrible situation. Keep in mind that what you don't know is greater than what you do know. And so the power of diversification is a really great power. So I'd like you to understand, what are you good at? What do you know and what don't you know? And then how do you diversify well to have a good return relative to your risk? That's the most important principle.
I love that. You know way less than what you know. Having respect for what you don't know in an investment space is massive. And I, and actually, that's why I love funds. Funds naturally diversify yourself into a lot of asset class, a lot of different things. That's spot on.