Diversification: Many Investors Miss an Important Point
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 Published On May 19, 2022

If you’ve been around the investing scene for a while, you’ve probably heard someone say:
“Don’t put all of your eggs in one basket.”
Or maybe you’ve heard someone suggest just the opposite while using the same analogy:
“Put all your eggs in one basket and watch it.”
Intelligent investors shun risk. The first camp is saying that, in the stock market, it’s a good idea to buy many companies because it will reduce your portfolio risk. If a catastrophe happens to one of your companies, you still have the other ones. Meanwhile, the second camp says that if you own too many companies, you usually don’t understand any of them too well, and that’s a risky thing too. Today, I’m here to tell you that these two groups often miss an essential point and that, they are, in a sense, both wrong. And since I’ve presented both the first AND the second analogy on this channel before, well, I guess that I’ve been doubly wrong.

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My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.

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