Portfolio theory

[AndreAmorim]

Hello Fellows,

Following Sir Warren Buffett advice “Keep all your eggs in one basket, but watch that basket closely.”
( http://investingcaffeine.com/tag/wall-street-journal/)

Does anyone know any research about:
Modern portfolio theory
https://en.wikipedia.org/wiki/Modern_portfolio_theory

Vs

Behavioral portfolio theory
https://en.wikipedia.org/wiki/Behaviora ... lio_theory

[psztorc]

MPT is in the process of being discredited, for example: http://wealthmanagement.com/investment/ ... tion-wrong

The assumption that all investors are the same (or, "that there is only one investor") is not really compatible with reality (specifically, demographics).

Why don't you just get rid of that stuff and read "The Misbehavior of Markets" by Benoit Mandelbrot instead.

[AndreAmorim]

Nice article thanks, just bought the book you'd recommended. Fractals always fascinated me ..
Thanks.