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RE: Portefolio Diversification - Why it's so important and how it works!

in Project HOPE3 years ago

Nice article. But, there's also risk in too much diversification, as you are not focusing on few investments that will give you excellent returns. You shouldn't put all your eggs in one basket, and you shouldn't spread all your eggs in too many baskets. Therefore, I do agree with diversifying your investments in uncorrelated assets. But it shouldn't be too much diversification. There should be focus on a few things that you understand. Awesome read. Thanks for sharing!

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Yeah, diversification is a tool, and as such, too much or too little of it will hurt your returns!

Also agree with the 'never invest in anything you don't know much about' idea.

Awesome comment. Thanks for the reply!

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