If you have been investing for some time, you may have heard or read about some other portfolio strategies. Two that were often mentioned would be the barbell portfolio strategy and pyramid investing strategy, which I will call them barbell and pyramid respectively.
Most investment portfolios and funds come in the form of a pie chart, denoting the various asset classes, geographical locations, sectors and industrials, companies, and their respective make-up, usually in percentages. Some argued that such charts do not necessarily convey an important component of portfolio management, and that is risk. I can show a pie chart that is made up of 60% tech stocks that had gone way above their valuations and 40% junk bonds, but to the novice (or even a seasoned investor if he/she is not careful) the risks are not clearly defined. The barbell and pyramid enable a viewer to see the risk factor of each financial...