1. Ashvin B. Chhabra CFA Texas 2016 The Aspirational Investor

2. The Problem Success in investing is defined as achieving “above average risk-adjusted returns”

3. The Investor’s Worst Enemy

4. Speculative Bubbles & Market Manias

5. Behavioral Flaw

6. Market Assumptions Financial markets, like floods, hurricanes, and other irregular and random phenomena in nature, are inherently unpredictable. They are not “mildly random,” …“but wildly random.” Benoit B. Mandelbrot: "New Methods in Statistical Economics," Journal of Political Economy, 71(5): 421‐440. (1963a)

7. German Postcard Circa 1899

8. Why Invest? M The Question What is the purpose of the Money?

9. How much (Money) do I Need?

10. Introduction: Classification of Goals

11. Maslow’s Hierarchy of Needs © Ashvin B. Chhabra, The Aspirational Investor. 2015

12. The Digital Age

13. Volatility of Markets during a Human Lifetime ( (US Home Prices – Data based on work of Robert J. Shiller, Yale University) © Ashvin B. Chhabra, The Aspirational Investor. 2015

14. Fat Tails: Pound ‐ Guilder 1609 ‐ 2000 Source: Casper G. de Vries, “Fat Tails and the history of the guilder,” tinbergen magazine 4, fall 2001.

15. Fat Tails: Pound ‐ Guilder 1609 ‐ 2000 Source: Casper G. de Vries, “Fat Tails and the history of the guilder,” tinbergen magazine 4, fall 2001.

16. Owning the world

18. How do People become (very) Wealthy?

19. Wealth of America Ashvin B. Chhabra et al, “Modern Portfolio Theory’s Third Rail: Achieving Wealth Mobility through Idiosyncratic Risk”. (Journal of Wealth Management, Summer 2011) Source: Based on 2007 Survey of Consumer Finances Data

20. The Wealth Allocation Framework

21. Source: Chhabra, Ashvin, “Beyond Markowitz: A Comprehensive Wealth Allocation Framework for Individual Investors,” Journal of Wealth Management, Spring 2005

22. Three Layers (Portfolios)

23. Digging Deeper

27. Don’t try this at Home

28. Endowment Model

29. Buffett’s Magic

30. The Digital Age

31. The Aspirational Society

33. Ashvin B. Chhabra CFA Texas 2016 The Aspirational Investor