No. of Recommendations: 1
So who is right? Asset allocation is the most important investment decision, much more important than individual security selection. We, I, need to figure out the right answer.
There is no one right answer --- as equally there is no wrong answer. Obviously it depends on you as an individual, with time horizon, risk appetite/aversion, goals, needs, greed and fear different from other individuals, see
Amusingly, William Sharpe, famous for quantitative analysis and the capital asset pricing model, said that he invested an amount in stocks versus bonds that he could "stomach losing."
Surely more than half of the last 2.5 years I had an allocation of 3% to 17% in BRK put options (since yesterday one of the rare times it´s 0%). Surely nobody else here had anything even remotely similar, and correctly so, as it would have been wrong for them, while it was right for me.
