Larry Swedroe – Beware of Idiosyncratic Risks

<p><strong>BIO: </strong>Larry Swedroe is head of financial and economic research at Buckingham Wealth Partners.</p><p><strong>STORY: </strong>Larry chose to invest in an individual bank stock in the mid-80s instead of following his gut to invest in a portfolio of stocks. The bank’s President committed fraud, and the company went bankrupt. Larry lost about 80% of his investment.</p><p><strong>LEARNING: </strong>Avoid idiosyncratic risks by hyper-diversifying your portfolio.</p><p>&nbsp;</p><blockquote class="ql-align-center"><strong>“Focus on managing risks and not trying to generate alpha or risk-adjusted outperformance.”</strong></blockquote><blockquote class="ql-align-center">Larry Swedroe</blockquote><p>&nbsp;</p><h2>Guest profile</h2><p><a href="https://www.linkedin.com/in/larry-swedroe-18778267/" rel="noopener noreferrer" target="_blank"><strong>Larry Swedroe</strong></a> is head of financial and economic research at <a href="https://buckinghamwealthpartners.com/" rel="noopener noreferrer" target="_blank">Buckingham Wealth Partners</a>. Since joining the firm in 1996, Larry has spent his time, talent, and energy educating investors on the benefits of evidence-based investing with enthusiasm few can match.</p><p>Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “<a href="https://amzn.to/3HC9QnZ" rel="noopener noreferrer" target="_blank"><em>The Only Guide to a Winning Investment Strategy You’ll Ever Need</em></a>.” He has authored or co-authored 18 books.</p><p>Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television on various outlets.</p><p>Larry is a prolific writer, regularly contributing to multiple outlets, including <a href="https://alphaarchitect.com/blog/" rel="noopener noreferrer" target="_blank">AlphaArchitect</a>, <a href="https://www.advisorperspectives.com/search?q=Larry+Swedroe" rel="noopener noreferrer" target="_blank">Advisor Perspectives</a>, and <a href="htt