Five ways we can better take and manage risk. Topics covered include: How likely is it that China will invade Taiwan and the stock market will fall 80%Why experts tend to be humble and don't make specific predictionsWhat is the difference between risk and uncertainty, and between loss capacity and loss aversionWhat factors impact our degree of loss aversion and loss toleranceWhy the economy needs more risk takers rather than rentiers Show Notes Investor Risk Profiling: An … [Read more...]
350: How to Invest in Startups on Equity Crowdfunding Platforms?
The risks and opportunities of investing in startups on equity crowdfunding platforms. Topics covered include: Why do individual investors now have more access to startup investments What has been the historical performance of venture capital funds How most startups fail, leaving only a few startups to offset portfolio losses What factors to consider when deciding on which startups to invest Why do startups have so many different share classes What platforms are … [Read more...]
266 Plus: Yield Ratios, Callable Securities, and SAFE structures for Start-up Investments
In Plus episode 266 for the week of August 31, 2019 we explore whether corporate bonds spreads should be lower if overall interest rates are low. In other words, can we observe investor fear by looking at the ratio of high yield corporate bonds yields relative to Treasury yields instead of just the difference between the two yields. We also identify what investors need to consider when investing in a security that can be redeemed early by the issuer. Examples include callable bonds, preferred … [Read more...]
