Barbell Strategy
The Barbell Strategy is an investment approach that aims to balance risk and return by holding both high-risk and low-risk assets in a portfolio simultaneously. The strategy gets its name from its visual analogy: the portfolio is weighted at both ends with high-risk and low-risk assets, while the middle part (medium-risk assets) is less represented or absent.
Barbell Strategy
Definition
The Barbell Strategy is an investment approach aimed at balancing risk and return by holding both high-risk and low-risk assets in a portfolio. The name of the strategy comes from its visual analogy: the two ends of the portfolio represent high-risk and low-risk assets, while the middle part (i.e., medium-risk assets) is either minimal or entirely absent.
Origin
The concept of the Barbell Strategy was first introduced by renowned risk management expert Nassim Nicholas Taleb. He elaborated on this strategy in his books
