55 Tips about Diversification

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The principle difference and benefit to investors in an index fund is that their management fees are a fraction of those charged for actively managed...
We want each decision we make to have a meaningful impact on our results and to be rewarded when we’re right, so our portfolio is concentrated in...
Diversification is not how many different things you own, but how different the things you do own are in the risks they entail.
A portfolio which includes both long and short positions in stocks which tend to move together will generally have lower volatility than one which has...
Ben Graham always made the point that even if you thought you had a portfolio of very cheap stocks, if the market at the time was fully priced, you...
Portfolio Diversification: The key to diversification is finding investments that are not closely correlated to one another; gold has historically had...
Gold should be an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper...
Nonmarket risk can be reduced through diversification. By owning several different stocks in different industries whose stock prices have shown little...
I’ve never had the confidence to make precise distinctions about which of the stocks we own will go up more than the others. It’s hard enough at...
Owning a mutual fund that invests in 100 companies doesn't necessarily mean that you are at optimum diversification either. Many mutual funds are...
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