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The Thinking Investor's avatar

Great article G!

Funny how Marks has said that the "high risk = high reward" hypothesis makes no sense. I'm sure he's aware of study. Because clearly it doesn't hold a candle to current research.

The research on returns by market cap also make a lot of sense. I have a lot of small caps in my PF, and I'm fully aware and accept the volatility that accompanies it. But I feel this gives me an edge in terms of return that I wouldn't be able to get from holding large caps.

Its pretty scary how difficult it is to keep up a high earnings growth! This lends credence to if you find something that can outperform, you'd better hold onto it for dear life. You may have a once in a lifetime winner on your hands.

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Low Risk Rules's avatar

Thanks Giuliano!

If anyone is interested in learning more I offer a free chapter when signing up for my Substack, and you can find the book here: https://www.amazon.com/Low-Risk-Rules-Preservation-Manifesto/dp/1774581744/

I'd be happy to discuss offline as well.

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