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In investing, as in poker, following rules works best


The Economist says:

A sound principle is to settle on a basic strategy and stick to it. In poker that means choosing in advance which starting hands you will play in each table position and deciding how you will bet should those hands improve when the shared cards are dealt. The policy also works in investment.
A simple strategy is to allocate a fixed portion of your wealth to different assets—half in a broad index of stocks, say, and half in bonds—and to “rebalance” every so often so that the weights are kept constant. An advantage is that you will automatically sell assets that have become dearer and buy assets that have become cheaper.

Though simple in principle, a rules-based approach is difficult to follow in practice.

The good news is that with the ALPIMA platform, rules-based investing is as simple as building a Lego kit.

Link to Article: In investing, as in poker, following rules works best

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