The barbell strategy consists of exposing most of yourself to safe activities and a tiny bit of yourself to risky ones with high upside. Barbell Strategy Investment
The point of the barbell strategy is to pursue risky activities in a way that caps downside. By reducing the amount exposed to risk, it prevents a single loss, or a short series of losses, from constituting a game-over. What matters is that you can afford small risky bets for longer. Barbell Strategy Investment
In investing, the barbell strategy consists of allocating part of one’s wealth in non-risky assets and part in risky ones with high upside (the asymmetry being reminiscent of a barbell). Investors who do so find themselves wealthier than those investing all their wealth in medium-risk assets. Barbell Strategy Investment