Statement Risk

In this episode of The Compound and Friends, Cole Wilcox, founder, CEO, and CIO of Longboard Asset Management, joins Josh Brown and Michael Batnick to discuss trend following as an investment strategy. The conversation explores the impact of early market experiences on investment biases, the increasing speed of market cycles due to news and social media, and the changing demographics of investors. Wilcox explains his belief in diversification and the importance of avoiding permanent capital loss, highlighting how trend following can help remove the "double zero" from investing by preserving capital and maintaining discipline. The discussion covers the costs and benefits of trend following, the role of new highs and volatility in investment decisions, and the potential for trend following in sector-specific funds.