Why Do Alternative Investments Matter?
Watch how the power of alternative investments can generate strong returns. Blue Sky Alternative Investments Limited is an Australian-based diversified alternative asset manager specializing in four asset classes: Private Equity, Private Real Estate, Hedge Funds and Real Assets.
Introduction to Alternative Investments
An alternative investment is a financial asset that does not fall into one of the conventional investment categories. Conventional categories include stocks, bonds, and cash. Alternative investments can include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts. Real estate is also often classified as an alternative investment.
Chart your course with Alternative Investments
Today more than ever, alternatives should be part of your core.
Alternative investments offer your clients opportunities that traditional 60/40 portfolios cannot. Consider redesigning your portfolios with alternative strategies that can help provide diversification or seek to amplify returns through access to private markets.
The Rule Of 72
Link to calculation table & video
The “Rule of 72” is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself.
Why Every Institutional Portfolio
Needs Exposure To Managed Futures
Ernest Jaffarian
Ernest Jaffarian is a 30 years veteran within the alternative investment industry. He started his career as a floor trader in 1986 and quickly become a lead market maker. In 1993 he co-founded a CTA and in 1999 he set up Efficient Capital Management, a pioneer in the Managed Futures space.
How The Economic Machine Works
Created by Ray Dalio this simple but not simplistic and easy to follow 30 minute, animated video answers the question, “How does the economy really work?” The video breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies work and why economic cycles occur.
The Definitive Warren Buffett Collection
The Warren Buffett Archive is the world’s largest collection of Buffett speaking about business, investing, money and life. In his own words with short videos. Warren Buffett’s enormous success, along with his middle-American common sense and self-deprecating sense of humor, have helped make him one of the world’s most admired billionaires.
What is ‘Risk Tolerance’?
Different investors have different levels of Risk Tolerance.
Risk tolerance is the degree of variance (i.e. volatility), in returns an investor is willing to allow in an investment or portfolio. One aspect of portfolio construction is the time horizon (i.e. duration), for a portfolio.
You should have a realistic understanding of your ability and willingness to stomach large swings in the value of your investments; if you take on too much risk, you might panic and sell at the wrong time.
What does ‘Risk Averse’ mean?
Risk averse is a description of an investor who, when faced with two investments with a similar expected return (but different risks), will prefer the one with the lower risk.
A risk-averse investor dislikes risk, and therefore will stay away from adding high-risk stocks or investments to their portfolio and in turn will often lose out on higher rates of return. Investors looking for “safer” investments will generally stick to cash, certificates of deposit (CDs), Treasury bills, and government bonds, which generally have lower returns.
What is the ‘Risk-Return Tradeoff’?
Risk return tradeoff is important in designing an investment portfolio.
According to the risk-return tradeoff, invested money can render higher profits only if the investor is willing to accept the possibility of losses and greater volatility.
The risk-return tradeoff determines how aggressive an investor wants to be with the assets and underlying investments included in the portfolio. An investor should be aware of his personal risk tolerance when constructing a portfolio. Low levels of uncertainty or risk (low volatility), are associated with low potential returns, whereas high levels of uncertainty or risk (high volatility), are associated with high potential returns.
Risk Premium – There Is No free Lunch!
A risk premium is the return in excess of the risk-free rate of return an investment is expected to yield; an asset’s risk premium is a form of compensation for investors who tolerate the extra risk, compared to that of a risk-free asset, in a given investment.
Think of a risk premium as a form of hazard pay for your investments. Risky investments must provide an investor with the potential for larger returns to warrant the risks of the investment.
Tony Robbins Dispels Some Common Myths About Investing
“ When I asked Warren Buffet his secret to wealth. He said three things; Number one was being born in America. Number two is good genes so I’ve lived a long time. And Number three was compound interest and diversification – that’s it. Most people don’t understand you can tap those powers.” – Tony Robbins
WorldOMeters
See the World in Real Time
Live real time world statistics on population, government and economics, society and environment, food, water, energy and health. Interesting statistics with world clocks; including forest loss, carbon dioxide co2 emission, world hunger data, energy consumed, and a lot more!
TED Talks
TED is devoted to spreading ideas, usually in the form of short, powerful talks (18 minutes or less). TED is a global community, welcoming people from every discipline and culture who seek a deeper understanding of the world. We believe passionately in the power of ideas to change attitudes, lives and, ultimately, the world. On TED.com, we’re building a clearinghouse of free knowledge from the world’s most inspired thinkers – and a community of curious souls to engage with ideas and each other.
Optimizing The Speed Of Knowledge
Through Ideas
In our digital age, we’re drowning in information. The web offers us infinite data points—news stories, tweets, wikis, status updates, etc—but very little to connect the dots or illuminate the larger patterns linking them together. Our ever-growing network of 2,000 Big Think fellows and guest speakers, comprise of the top thinkers and doers from around the globe.