Episode 3: Preparation Before Prediction

In this lesson, the hosts, Adam Butler, Mike Philbrick, and Rodrigo Gordillo, discuss an advanced investment framework designed to manage capital with humility and balance. They emphasize the importance of preparation and diversification in investment portfolios, particularly in the face of changing economic conditions. They highlight the tendency of investors to concentrate their wealth in domestic stocks and bonds, overlooking global diversification. The hosts discuss various investment approaches, such as the Talmud’s concept of diversity, Harry Brown’s permanent portfolio, and Ray Dalio’s all-weather portfolio. They stress the need for resilience and preparedness in portfolios to navigate different economic regimes, including periods of high and low growth and inflation. The hosts caution against relying on predictions and emphasize the importance of being prepared in advance.