Excellent synthesis of Taleb and Mandelbrot. The Via Negativa framing is particularly useful becuase most portfolio construction defaults to addition when subtraction actually builds robustness. The barbell aproach avoiding the middle ground makes total sense once you accept fat tails, but it takes discipline to resist the pull toward mediocrity that looks like diversification.
Excellent synthesis of Taleb and Mandelbrot. The Via Negativa framing is particularly useful becuase most portfolio construction defaults to addition when subtraction actually builds robustness. The barbell aproach avoiding the middle ground makes total sense once you accept fat tails, but it takes discipline to resist the pull toward mediocrity that looks like diversification.
Some great points here. How do you view investing in index funds? Too diluted or not concentrated enough?