Warren Buffett’s first rule of investing is “Don’t lose money” and his second rule is “Never forget the first rule”. Wise investors throughout time have understood the simple truth that, while offense makes the headlines, defense wins championships. The great danger of the fundamental attribution error then is not that it makes us arrogant about our desired upside, it’s that it makes us careless about the downside. A belief in personal exceptionalism leads us to underweight negative probabilities; a sure recipe for disaster in investment decision-making.
BUT there IS Another way. A Better way. A way that has been evidenced by countless research studies going back more than 50 years. This evidence based approach to portfolio construction, involves combining different investment strategies, that produce uncorrelated return streams in a portfolio. A concept that Ray Dalio has promoted for decades as The Holy Grail to investing. But finding these uncorrlated return streams is difficult, because they have to be truly uncorrelated over decades of past data.
Luckily one of them is Trend Following, and today I want to give you a proper introduction to this strategy. A strategy that I have worked with for more than 30 years. But in addition to this, I want to explain in this short video how and why Trend Following has a MAGICAL impact on a portfolio of stocks and bonds, and show you how easy it is for you to bennefit from this, starting today.
In this video, you will learn:
- The history behind Trend Following
- What does Trend Following Mean?
- Why do people REALLY invest in Trend Following
- The Size of the Industri and Who the Big firms are
- The Simple Concepts and Core Beliefs
- The Bennefits and the Secret to Achieving Higher Returns with Lower Risk
- How Much You should Invest in Trend Following
Please note that the video is recorded in the summer of 2020…and many of the arguments for having a core allocation to Trend Following has since been re-confirmed.
If you want to learn more about the specific strategy used in this video, please visit DUNN Capital's website.