Cullen Roche Drops by to Talk Perfect Portfolios

Cullen Roche, founder and chief investment officer of Discipline Funds, discusses his new book, "Your Perfect Portfolio," emphasizing that there isn't a single perfect portfolio but rather a need to find one that aligns with individual needs and risk tolerance. Roche outlines essential principles for assessing portfolios and explores over 20 investment strategies, from Warren Buffett's approach to risk parity and trend following. He stresses the importance of understanding one's behavioral biases and the characteristics of different investment instruments, advocating for a behaviorally robust portfolio that investors can stick with. The conversation touches on the challenges of diversification, especially during market stress, and the necessity of setting realistic expectations for investment returns.