You think those are conservative picks? I see you like NVDA, that seems a lot more risky after the run up it had... I am basically picking the new Coca Colas with the exception of the Black Rock which is a bet on Crypto :)
if you measure the risk by their standard deviation or beta, then obviously NVDA is risky. I just looked up its beta
Its beta is 2. That translates to it is about 2X more volatile that S&P500. So 2X more risky than SPX. However, for that higher risk profile its annualized return is 110% over 10 year rolling. I am totally comfortable in taking 2X risk compared to the market for a 10X return compared to the market.
You think those are conservative picks? I see you like NVDA, that seems a lot more risky after the run up it had... I am basically picking the new Coca Colas with the exception of the Black Rock which is a bet on Crypto :)
if you measure the risk by their standard deviation or beta, then obviously NVDA is risky. I just looked up its beta
Its beta is 2. That translates to it is about 2X more volatile that S&P500. So 2X more risky than SPX. However, for that higher risk profile its annualized return is 110% over 10 year rolling. I am totally comfortable in taking 2X risk compared to the market for a 10X return compared to the market.
Do you see my logic?
Yes, I see that 10x return for 2x the risk vs S&P500, does sound pretty good...