Grab yourself the age-old classic The Intelligent Investor, move into an index, cheaper than in Graham's time.
Prescribe to Taleb's idea of barbell investing: 85-90% in rock sold index funds. The rest in stupid high-risk speculatives...because you never know. Think of bitcoin when it was 5c a coin.
Thanks for the recommendation!
I like your formula above. The best-performing portfolios out there are divided by risk/volatility. The returns usually aren't dramatic, but they "can" be sometimes
(as you mentioned above). Most importantly, they're steady, often decent, and
NEVER DEVASTATING to the point you lose your ass.
I know a couple who - at the time of the 2008 crash - had most of their money invested in Vanguard's Wellington fund, which is a low-risk, well-diversified, and historically decent-performing fund. They didn't earn any money from it during that time, but they also didn't lose anything, either. Considering the deleterious effects of that crash, breaking even was pretty good for a couple of "average" investors.