“Black Swan” Investing Strategy
By, Michael Markowski, Founder and Director of Research of Dynasty Wealth
Dynasty Wealth’s opportunities having potential to increase by 10 to 100 times within 5 years are ideal for risk averse investors wishing to deploy a “black swan” investing strategy. The black swan was devised by Nassim Nicholas Taleb a former trader with a history of profiting from crashes. The strategy to invest 90% of one’s liquid assets in government or sovereign debt securities and the remaining amount into venture capital and low priced stocks which have the potential to appreciate by 1,000%. Taleb authored The Black Swan: The Impact of the Highly Improbable which spent36 weeks on The New York Times Best Sellers list.
Taleb’s philosophy is simple and safe. Invest under the assumption that it is inevitable that there will be “Black Swan” or one-off events that will result in all stocks and mutual funds crashing. Thus, diversification into even the highest quality stocks does no protect against risk. The video below explains the strategy and why sovereign debt is the only solution to protect liquid assets that are earmarked for safety.
Dynasty Wealth’s specialty is to identify first mover and disruptor companies that have the potential to go to a minimum valuation of $1 billion within five years regardless of how the overall stock market performs. First movers and disruptors are immune to a U.S. or global recession. UBER is a good example of a disruptor business model that would be immune to a market crash. A $10,000 investment into UBER in 2010 was valued for $105 million in 2015. The four-minute educational video below is about first-movers. There is a video about disruptors and other videos about the digital economy that are available for viewing: