What is asset allocation?

Asset allocation is not investing. Asset allocation means deciding what you leave to your children.

If you look at it purely from an economic perspective, what’s the most efficient use of capital? It’s a successful person’s trading system. Your domain of success shapes your system, but here’s the catch: something great always demands a capable driver, and market conditions shift. That’s why many entrepreneurs once thought their kids would take over—only to realize over time that, honestly, sometimes they can’t even hold the fort themselves.

Someone stays relevant at work because they still have utility value. There’s still a problem only you can solve, and people can’t easily do without you. A person’s worth is never about what they’ve done—it’s about what they can still do. As long as you’re needed, you’re valuable; as long as you’re valuable, your price won’t be zero.

That’s what people doing asset allocation are really figuring out: first, is there demand? Second, do you still have utility value? Only when both align can you pass it to your son so he can make money without breaking a sweat.