Ep. 193: Gerd Gigerenzer Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of a Simple Heuristic in Investment
A few years ago I had a chance to spend the afternoon with Harry Markowitz who is obviously for most people in the finance world and their college textbooks the name is quite familiar. He developed an optimization model called the mean variance portfolio that works if there's some of his model or in place. If someone makes this claim then it's like that the person gets it wrong. Interestingly when Harry Markowitz made his own investments for the time for his retirement he used his mobile prize winning optimization method so we might think no he did not. It relied on a simple heuristic. Divide your money equally. So if you have two options 50-50, if you're three or third or third and
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