Wick

Allocation does the heavy lifting

Portfolio & Risk

The split matters more than the picks

How you divide money between broad categories — shares, bonds, cash — explains far more of your result than which specific holdings you chose. It is the least glamorous decision and the most consequential one, which is why it gets the least attention.

Check yourself

Most of a portfolio's long-run behaviour comes from…

  1. Individual stock selection
  2. The broad allocation between asset types correct
  3. Entry timing

Picking is where attention goes. Allocation is where the outcome comes from.

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