Barbell Strategy
April 15th, 2024 (6 months ago) • 1 minute
The barbell strategy is an investment concept that suggests that the best way to strike a balance between reward and risk is to invest in the two extremes of high-risk and no-risk assets while avoiding middle-of-the-road choices.
I came across this term called the barbell strategy today.
It got me thinking about life where everything is grey and not black and white. There's no absolute right and wrong. Majority of the people will stick to average of middle choices due to herd mentality and also because it's generally the safer option (not too bad and not too good).
In my mind, 1 example is juggling multiple jobs at once instead of doing side projects or hobbies. You will earn tons of money but the tradeoff is you won't have time doing things you like.
I wonder what other extreme examples of the barbell strategy are there in life and do people actually win?
p.s This reminds me of Black Swan events in trading
p.s Found another barbell strategy in real life