Portfolio Strategy in DeFi

Friday, August 30th 2024
#defi

Why Start with the Portfolio Strategy?

This helps to provide a true north on top of any thesis you may have.

This mostly applies to not-professional investors -- like myself and perhaps you.

Sophisticated investors likely do more specific investment into projects, but the way I see DeFi, that plays a smaller role.

Here are some perspectives:

Jack Bogle (Founder of Vanguard Group)
“The most important decision you make isn’t picking stocks—it’s choosing the mix of stocks, bonds, and other assets you’ll hold.”

Harry Markowitz (Nobel Laureate, Father of Modern Portfolio Theory):
“Diversification is the only free lunch in investing.”

David Swensen (Chief Investment Officer of Yale University):
Asset allocation determines the risk-reward ratio of a portfolio more than any other decision an investor makes.”

With this in mind, I spend much of time time ensuring I have thought through these foundations.