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7h • General discussion
THE INTELLIGENT ASSET ALLOCATOR
Bernstein was a neurologist who got obsessed with a T. Rowe Price study showing a four-asset portfolio beating 75% of professional money managers. So he built his own spreadsheets, ran the numbers back to 1926. What he found is the reason "robustness beats performance" isn't just something I say, it's something the data has been screaming since before most of us were trading.
The core move of the book: take five different historical windows, calculate the mathematically perfect allocation for each one with full hindsight, then watch every single one of those "optimal" portfolios get destroyed the moment you carry it forward. 100% Japan in 1989. 99.8% precious metals in 1970. Every one a genius pick looking backward, every one a disaster looking forward. That's what happens when a fancy-looking tool gets fed recency bias.a
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THE INTELLIGENT ASSET ALLOCATOR
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