Part 6/11:
Comparing Volatility Management and Passive Strategies
Benchmarking against Ray Dalio’s Bridgewater Associates, the world’s largest hedge fund, the discussion shows how even sophisticated funds prioritize volatility smoothing. Dalio’s approach, which involves diversifying across asset classes, results in returns similar to the S&P 500 but with less daily turbulence. This underpins the idea that active volatility management is beneficial, especially for those nearing retirement.
The speaker personally prefers a "set-it-and-forget-it" approach—building businesses, creating content, and investing passively—freeing up mental space and time. For him, the long-term focus on wealth accumulation outweighs the discomfort of market fluctuations.