Abstract
Investing for wealth preservation is often different from how you built it. Building wealth almost always requires labor: often brutally long hours. It involves focusing on a narrow field of endeavor. And it often requires taking big risks, both business and financial. Wealth preservation, in many ways, is nearly the opposite. You typically rely on others’ labor so you can pursue your favorite activities. It entails diversification. Risks are generally lower with a focus on return of your capital, rather than on your capital. This chapter will address the core principles of investing for wealth preservation through a diversified portfolio of financial assets.
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Ibid.
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Ibid., p. 95.
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Ibid., p. 232.
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Ibid., p. 234.
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Ibid., p. 177.
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Ibid., p. 186.
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Ibid., p. 181.
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Ibid., p. 199.
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Eugene Fama and Kenneth French are generally credited with developing a three-factor model for stock pricing which includes market risk, size, and value. Eugene Fama received a Nobel Prize in Economic Sciences in 2013.
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Rojeck, R.P. (2019). Investment Management. In: Wealth. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-24497-2_7
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DOI: https://doi.org/10.1007/978-3-030-24497-2_7
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