Optimize Your Assets
- Aaron Kolkman
- Aug 11
- 1 min read
Updated: Aug 25
The Value of Advice is a difficult thing to measure. How did you get to where you are? How many years did it take? How much long-term investment? What were the returns? What was the risk? How much did you pay? And what did you get? WAS... IT... VALUABLE?
In this week's iteration of "Beyond Returns," I specifically present a universal method for measuring aggregate porfolio risk / reward, in a simple formula, based on the Capital Asset Pricing Model. This formula measures the value added through an asset allocation. Taken from the well-known chapter "Optimize Your Assets" in the 2018 edition of The Life Cycle of Wealth book (www.fidereadvice.com/lifecycle), this formula is essential to move our conversation forward as an investing community - investors and professionals alike. This post contains a copy of the chapter referenced, and a formulaic summary - free of charge.
Listen to this week's episdode about Measuring Advice, talk to us (www.astewardsview.com), talk to others, and then DECIDE WELL.
Aaron & Crew
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