Top Traders Unplugged

TTU116: In Pursuit of the Perfect Portfolio ft. Steve Foerster


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If we could gather all of the famous investing pioneers from world history into one room and ask them to build the perfect portfolio, what would it look like?  Well Steve Foerster and his co-author (and previous guest on the show) Andrew Lo, set out to do just that, with their new book called 'In Pursuit of the Perfect Portfolio'. I thought I'd invite Steve onto the show to discuss his new book, go through some of the 'golden threads' of investing that he came across, his journey in the world of finance, and of course, get his opinion on how close Trend Following is to 'the Perfect Portfolio'.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

In This Episode, You’ll Learn:

  • Steve's journey to becoming a Professor of Finance and how he ended up co-authoring a book with Professor Andrew Lo
  • Some of the concepts from the legendary financial experts they interviewed for the book
  • How closely linked the academic world of finance really is
  • About some of the most important findings in investment research over the decades
  • About the "untold" story of an early 20th-century mathematician, Louis Bachelier
  • Harry Markowitz' story
  • What Eugene Fama's Perfect Portfolio looks like
  • About William Sharpe and his now famous 'Sharpe Ratio'
  • How the phrase 'beta' came about
  • How computers enabled researchers to access deeper insights into the world of investing
  • About the debate between active and passive investing
  • Whether volatility should still be considered as a measure of risk
  • About the progression of volatility data into today's investment models
  • About the story of Eugene Fama
  • How Steve views the question of 'what is the perfect portfolio?'
  • Whether Steve considers Trend Following investing as, essentially, a perfect portfolio

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Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfoliohere.

Learn more about the Trend Barometer here.

Send your questions to [email protected]

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Copyright © 2024 – CMC AG – All Rights Reserved

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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

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Top Traders UnpluggedBy Niels Kaastrup-Larsen

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