R: Psychology of Money

Implement the "barbell strategy": be hyper-conservative in 1 and extremely aggressive in 2.

Barbell strategy: being hyper-aggressive and hyper-conservative instead of being mildly aggressive or conservative. On one hand, you’re creating a safe ground investing 80-90% of your capital into extremely safe instruments—that is your insurance policy against negative black swans. On the other hand, you’re generating a serendipity attraction machine investing 10-20% of your portfolio into incredibly speculative bets with extremely high upside (like venture capital, crypto, etc) that way you’re exposing yourself to positive black swans. You have no risk and high risk which averages out to medium risk but contains an exposure to positive Black Swans.