Limiting Belief 10 - Investors diversify their investments to minimize risk
Shall You Diversify Your Investments? ... Or Shall You Concentrate On Only A Few Holdings?
“Diversify your investments” is the most common advice offered by financial advisors.
Why do you think Warren Buffet believes otherwise when he said “Diversification is a protection against ignorance”?
In fact, he also said that risk can be greatly reduced by concentrating on only a few holdings. This precious advice suggests that investors become deeply knowledgeable in an area of investment and then stick to what they know. It is like putting all your eggs in one basket and then watching over this basket. Think of it like a kind of protection.
We cannot possibly understand all the moving parts of the economy and the countless investment choices available to us, but we can focus and become experts in one or few types of investments. In that way we minimize risk.
The Employee Millionaire (www.employeemillionaire.com) covers all the how-to's of real estate investments. What you will be learning is a wealth of information I have assimilated from many books, seminars, webinars, coaching from real estate advisors, and from my personal experience. I am trying to make it simple with many illustrations to improve the chances that anyone can understand and then apply the learning.
Learn More!
Get The Employee Millionaire Audio Book For Free With 30 Day Audible Trial
“Diversify your investments” is the most common advice offered by financial advisors.
Why do you think Warren Buffet believes otherwise when he said “Diversification is a protection against ignorance”?
In fact, he also said that risk can be greatly reduced by concentrating on only a few holdings. This precious advice suggests that investors become deeply knowledgeable in an area of investment and then stick to what they know. It is like putting all your eggs in one basket and then watching over this basket. Think of it like a kind of protection.
We cannot possibly understand all the moving parts of the economy and the countless investment choices available to us, but we can focus and become experts in one or few types of investments. In that way we minimize risk.
The Employee Millionaire (www.employeemillionaire.com) covers all the how-to's of real estate investments. What you will be learning is a wealth of information I have assimilated from many books, seminars, webinars, coaching from real estate advisors, and from my personal experience. I am trying to make it simple with many illustrations to improve the chances that anyone can understand and then apply the learning.
Learn More!
Get The Employee Millionaire Audio Book For Free With 30 Day Audible Trial
No comments have been added yet.
