1BasisPoint
The Tale of Two Tails — Why Convexity Isn’t Insurance | Antoine Guillon
1:03:41
One of the most memorable ideas from the conversation comes from David Dredge's Formula One analogy: The fastest car isn't necessarily the one with the biggest engine. It's the one that can carry the most speed into the corner — and brakes are what make that possible.
The same idea applies to portfolio construction: the objective isn't simply to minimise risk. It's to build a portfolio that can…