My Living Portfolio Theory is my daily diary into my life. The good, The bad, The ugly and The beauty.
A little background: In my line of work, I work consistently with what is known as The Portfolio Theory. I believe in this theory. For example, where the past performance of securities is used to determine the range of possible future performances and a probability is attached to each performance. A component of the Portfolio Theory is known as the Standard Deviation. That is a statistical measure of the degree to which an individual value in a probability distribution tends to vary from the mean of the distribution. The greater the degree of dispersion, the greater the risk. (re-read that - you'll get it) In English? Each holding (Security, Mutual Fund, etc) is given a Standard Deviation measurement so that investors can evaluate the holding against a benchmark and make a decision as to the amount of risk they want to assume.
Why am I telling you all of this? It is my life philosophy. I believe our past creates our future. It defines who we are, what we want and what we are willing to do to obtain certain life things (emotional, spiritual, material). As a people, we don't give ourselves a number on a scale - nor do we have entities like MorningStar giving us an individual rating, however, evaluation is created on a person's perspective of that individuals "standard deviation" and the risk/reward they gain from that interaction and relationship natuarlly based on a variety of factors. The world is made of these relationships. Everyone we interact with, even observe or have been influenced by (ie... an author, a famous figure, a higher being) has an impact on our "Portfolio" as a whole and it's allowing that person (mortal or not) to be or not to be a piece of your pie. Do you take the risk or alleviate it?
I look at my life like that "Portfolio". The pieces to my pie that create my world. It is here I write about the pieces to my pie. Enjoy.
No comments:
Post a Comment