It’s official: You can reduce your investment risk simply by chucking darts at a list of stocks, then buying them.

That’s if you believe a Nobel economist, of course. His crude “experiment” was the start of “modern portfolio theory” decades ago. The downside, however, was that with a reduction of risk came a dampening of profits. So scratch that idea.

How about this? A startling study in the late 1970s showed that owning a portfolio of large U.S. companies with international divisions drops your risk 10% below a domestic stock portfolio. Much better. But that wasn’t the eye-popper…

The study also found that owning stocks in international companies cuts your risk in half…

Take that, “efficiency” theorists! Yet the stuffy professors still tried to refute these results. It was a losing battle, though, as more studies emerged, laden with more evidence that international stocks reduce risk.

But the

The Philosophy of Money: What It Means to Be Truly Wealthy

by Alexander Green, Oxford Club Investment Director

As a young man in my twenties, I worked as a stockbroker in a local firm. Before long I was earning a six-figure income. Then came the brand-spanking-new lakefront house, the ski boat, the Jaguar XJ-6, and all the other toys.

I saved virtually nothing. When my friends came over for parties - which were frequent - most of them assumed I was rich.

I was nothing of the sort, I hadn’t learned about the true philosophy of money.

Wealth is not the same thing as income. If you earn a lot of money and blow it every year, you’re not rich. You’re just living high.

Wealth is what you accumulate, not what you earn. And it certainly can’t be measured by what you spend.

How does the average person get rich?