13. Speculate on higher risk bets

They have the potential for significant returns but also carry substantial risk.

Why Make Small Sensible Bets?

Nassim Nicholas Taleb, author of Antifragile, advocates for a "barbell strategy": combining safe investments with small, high-risk bets. This approach limits downside while exposing you to potentially life-changing gains.

• Limited Risk: Small bets ensure you don’t lose more than you can afford.
• Asymmetric Payoff: A small investment can yield outsized returns if the asset succeeds.
• Diversification: Adds an element of unpredictability to your portfolio, which can enhance resilience.

Examples

• Cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA)
• Meme Stocks: GameStop (GME), AMC (AMC)
• Startups: Equity crowdfunding or angel investing
• Commodities: Gold, silver, or rare earth metals

Steps to Start

• Allocate a Small Portion: Limit speculative bets to 1-5% of your portfolio.
• Do Your Research: Understand the risks and potential of each asset.
• Stay Disciplined: Avoid chasing losses or overinvesting in speculative assets.