Subject: Re: Protecting the Downside
“If you want to keep it simple and narrow down to just stock/index options (e.g. puts) or cash, then it’s better to simply lighten up your equity and have more cash. Puts are very expensive insurance.”

Yes, that’s my perspective as well. I’ve always been in range of 95% quality equities and have never hedged. As noted by Gemini AI:

“Based on historical data from 1926 to 2023, the S&P 500 had a positive return over 5-year rolling intervals approximately 93.62% of the time.”

Even though a S&P index does Not dominate my portfolio, I like the probabilities of U.S. equities appreciating over the moderate-long-run & we can roll with some short-term gut punches. I suspect Buffett and Munger did not personally use puts/insurance. Btw, in Vegas Blackjack, I never take insurance either. :)