Portfolio Diversification #2: A Look at The Players’ Asset Mix

In the last post I talked about the ethical form of Portfolio Diversification. However, we’re live in a world where many don’t play fair. So let’s now look at how the players do it.

There are two types of dates: Short-Terms (STs) and Long-Terms (LTs). STs are fun in the present, but unsustainable for the long-run. E.g. Just because you could sing karaoke until four a.m. with someone, doesn’t mean he/she is suitable to bring to your parents. Maybe he/she is obsessed with designer handbags, or the latest gadgets. Being with someone in the long term means sharing their credit ratings, among other things.

LTs, on the other hand, are the hardworking, stable, gentle “nice guys/girls” often overlooked and underrated in popular culture. They’re considered a bit boring for having fun in the present, and less of a challenge.

Players keep a portfolio of different potentials around. That way, there’s always somebody waiting in the wings. They give their priority to STs, yet keep leading the LTs on. The latter serve as backups for the future. And as a player gets older, he might switch his investment strategy (from aggressive to conservative) by changing the asset mix of his portfolio (more LTs and less STs). Talk about having your cake and eating it too.

In the game of love, the one who’s less emotionally invested has more power. The cost of acquiring the LTs is relatively low; they generally like the player so much it doesn’t take much to keep them coming back. Deep down, LTs know that they’re being played, but unless they grow a backbone and refuse to go along with the game, they’ll always be at the bottom of the list. I know a few LTs who finally said no, and went on to have very happy lives. It’s doable!