My hardline stance as an investor is always to avoid big losses. But there’s a corollary to that that can sometimes get lost. Once I’ve managed risk in my portfolio, my next objective is to “take big shots with small amounts of money.”
For me, that often leads to option strategies. Not the collars I write about here frequently, as that’s another form of risk management. I’m talking about the thing that frankly, back in my days as an investment advisor, my clients probably saw as my biggest deficiency. “Rob will keep you from giving back a big chunk of what you’ve accumulated. But he doesn’t have a fastball investment.” High-octane, high-beta strategies just weren’t in my golf bag.
