International Journal of Human Research and Social Science Studies

This research examines the complex system of financial decision-making through the Rolling Nuts portfolio allocation structure, introducing the concept of financial entropy as a metric for the organizing principle and self-sustaining mechanism inherent in investment strategies. The aim of the study is to demonstrate that applying nature-based order in portfolio management enables sustainable, regenerative asset management.

The research methodology compares the performance of six different diversified portfolios (four-, five-, and seven-asset structures) based on 2,000 validated investment decisions, over both short-term (quarterly) and long-term (10-year) time horizons. The results show that investment decisions are primarily determined by subjective factors – such as risk aversion and trend following – while expected returns carry significantly less weight.

The research demonstrates that more concentrated portfolios – as opposed to equal-weighted portfolios – are more efficient, and a strategy focusing on a relatively small number of holdings can result in significant outperformance relative to market benchmarks. The study concludes that the intuitive application of passive, rule-based, and behavior-based investment strategies can be successfully combined with a systems approach, thereby laying the foundation for a scalable, regenerative wealth management tool that supports individual financial self-determination.

behavioral finance, financial culture, portfolio management, self-sufficiency, sustainable wealth management

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