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Comment by tschwimmer | Hacker News Reader

94%... unbelievable. I have to assume these billionaires have access to someone with familiarity with modern portfolio theory (or someone who has heard the word 'diversification' and has functional internet connection) so one has to conclude that he intentionally decided derisking. Pretty wild...

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When most of your wealth is in funny money that you printed, diversifying is easier said than done.

> I have to assume these billionaires have access to someone with familiarity with modern portfolio theory (or someone who has heard the word 'diversification' and has functional internet connection)

He is one of those people. The article notes he was a Jane Street trader.

Didn’t listen to enough Wu-Tang

Though, I guess Wu is for the children, so SBF was unfortunately too old for their sage advice

SBF was 1 year old Wu-Tang debuted

I don’t think that they themselves realized they had to diversify their bonds until some time after.

He’s not an idiot, it was just functionally impossible for him to liquidate his positions without nuking their values.

I wouldn't diversify if I were in his position. If my wealth dropped from X billion to Y hundred million - so? I'm still living a life of luxury. I'd much rather be All In on the main venture and not have the distraction of money and money management.

Dumping your money into three-fund Boglehead portfolio and HODLing it requires approximately zero management or distraction.

Dumping isn't hard problem here, liquidating is.

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