BUILD THE PLATE — Asset Allocation, Diversification & Portfolio Construction
Unbearably Bullish with Donald B. Johns III · Aug 11, 2026 · 19 min
Show Notes
Episode 6 of Taco Tuesday on Unbearably Bullish — how you build your investment plate matters as much as what you put on it. Asset allocation, diversification, and portfolio construction explained.
What do tacos, burritos, salsa, guacamole and churros have to do with investing?
Today we're using the ultimate Taco Tuesday showdown to explain how asset allocation, diversification, risk, correlation, portfolio overlap and rebalancing can work together.
Welcome to Episode #6 of Taco Tuesday on the Unbearably Bullish Podcast with host Donald Johns.
We've already put options, ETFs, mutual funds, bonds and alternative investments on our financial menu.
Now it's time to...
- BUILD THE PLATE.
- GRINGO TACO vs. AUTHENTIC MEXICAN-STYLE TACO
Different construction. Different ingredients. Different experience.
The investing lesson?
Different plate doesn't automatically mean wrong plate.
Investors can have different objectives, time horizons, liquidity needs, tax considerations, risk tolerances and financial circumstances.
- TACOS vs. BURRITOS
One ETF or mutual fund may appear as a single position while containing exposure to many underlying securities.
One wrapper can contain a lot of ingredients.
- HARD SHELL vs. SOFT SHELL
Structure matters.
Stocks, bonds, ETFs, mutual funds, options and private investments can have very different structures, liquidity characteristics, expenses and risks.
- PICK YOUR PROTEIN
Beef? Steak? Chicken? Carnitas? Shrimp?
Our investing principle
- EVERY INGREDIENT NEEDS A JOB.
Growth. Income. Liquidity. Diversification. Capital preservation. Risk management. Different investments may be intended to serve different portfolio objectives.
- SALSA ROJA vs. SALSA VERDE
How much heat can you actually handle?
We examine risk tolerance vs. risk capacity and why saying you're comfortable with volatility can feel very different when markets actually become volatile.
- THE SIX-CHEESE PORTFOLIO
Owning multiple funds doesn't necessarily mean you're diversified if they contain substantial overlapping exposures.
More holdings ≠ automatically more diversification.
- CORRELATION
Why portfolio construction considers not only individual investments, but also how different holdings have historically behaved relative to one another.
- REBALANCING
Markets move. Allocations can drift. We explain what portfolio rebalancing means and why taxes, transaction costs, account type and individual circumstances matter.
- CHURROS vs. TRES LECHES
The final lesson
Before choosing the ingredients, understand why you're building the plate.
Retirement? Income? Growth? Liquidity? Education? Legacy? Another financial objective?
When someone asks, “What's the best investment?”
A better educational question may be
- BEST FOR WHAT?
- THE BULL'S BOTTOM LINE
Know what you own.
Know what's inside it.
Know the risks.
Know the costs.
Know the potential overlap.
Know how the pieces may interact.
And most importantly
- KNOW WHY IT'S ON YOUR PLATE.
About Taco Tuesday
Business. Entrepreneurship. Growth.
Actionable strategies for entrepreneurs, business owners, creators, and professionals looking to scale, innovate, and grow.
Episode disclosure
⚠️ EDUCATIONAL DISCLOSURE: This content is provided for general educational and informational purposes only and does not constitute individualized financial, investment, legal or tax advice or a recommendation, solicitation or endorsement to buy, sell or hold any security, strategy or asset class. Investing involves risk, including possible loss of principal. Diversification and asset allocation do not ensure a profit or protect against loss. Options involve risk and are not suitable for all investors. Alternative/private investments may involve additional risks, including illiquidity, valuation uncertainty, fees and eligibility restrictions. Past performance does not guarantee future results. Conduct appropriate due diligence and consult qualified professionals regarding your individual circumstances.
