How To Be a Calculated Risk-Taker w/ Jeff Dorman

TL;DR

Jeff Dorman, Chief Investment Officer at ARCA, shares his experiences and insights on taking risks in both personal and professional endeavors.

Transcript

foreign and most of what I've realized is that a lot of the things that we fear in life are a lot of the things that we worry about in terms of downside oftentimes isn't that big of a deal and I think that's probably the biggest attitude for me is it's not that I'm willing to take less risks it's more I think I've lived my life that way of not kind... Read More

Key Insights

• ✳️ Taking risks is not just about being willing to take big swings, but also about understanding the downside and managing risk effectively.
• 🚛 The ability to articulate and evaluate risks and rewards is crucial in decision-making, both in investing and in life.
• 💪 Building a strong network and staying connected with others can provide valuable insights and perspectives.
• 🥺 Leaving one's comfort zone and embracing change can lead to new opportunities and personal growth.
• 💦 Balancing work and personal life is important, and sometimes taking a step back from the corporate world can provide new insights and experiences.
• ✳️ Evaluating and understanding risk is an ongoing process that requires continuous learning and adaptation.
• ✳️ Learning from both successes and failures helps shape future decision-making and risk management strategies.

Questions & Answers

Q: How did Jeff's upbringing shape his attitude towards risk-taking?

Jeff credits his interest in risk-taking to his background in sports and being a math-oriented person. However, his parents' risk-averse nature also influenced his cautious approach.

Q: How did leaving his job at Lehman and moving to DC impact Jeff's career?

Jeff's decision to move to DC to be with his wife led to a career change and opened his eyes to new opportunities outside of the traditional Wall Street world. It ultimately led him to a career in fintech and blockchain.

Q: How did working in fintech change Jeff's perspective on risk?

Jeff's experience in fintech exposed him to a wider range of financial professionals and forced him to work with developers, which required more collaboration and understanding of different perspectives. This experience led him to develop a more methodical approach to risk management.

Q: What was the biggest lesson Jeff learned from owning a large position in Trump Bonds?

Jeff realized the importance of understanding and managing downside risk in investments. It taught him to focus on risk-adjusted returns and to consider all possible outcomes before making investment decisions.

Summary & Key Takeaways

• Jeff Dorman grew up in Cleveland and started his career on Wall Street, working as an investment banker and trader.

• He took a risk by leaving his job at Lehman Brothers to follow his now-wife to DC, which led to a career transition and a move to LA.

• Jeff also took a risk by leaving the hedge fund world to work in fintech, which changed his perspective on risk and led him to start ARCA.

• One of his worst trades was owning a large position in Trump Bonds, which taught him the importance of managing risk and understanding downside.