The Barbell Strategy


Instead of opting for the median, going for both of the extreme ends of some situation in an attempt to remove downside.
In investing, it translates to investing in short- and long-term bonds, and not opting for the intermediate duration bonds.1

Never go for the median. Always go with two extremes to remove downside.

For example with weight lifting: Heavy lifts and long effortless walks instead of going hard sometimes and walking at a decent pace with incline.

Also called “bimodal strategy”.

Footnotes

  1. Antifragile (book) - Wikiwand ↩

Incoming links: Mental Models