DIVERSIFICATION - Is it Stupid to go "All In" on an Investment?
Diversification is the topic of today's discussion.
We'll be taking a look at the pros and cons of being firmly concentrated in one particular type of investment VS being invested in a multitude of different asset classes such as equities, property, cryptocurrencies etc.
Let me know what you think!
DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.
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The internet is a great tool I wish it was about when I was younger, I think as you get older your investment strategy will probably change. Cheers mike
Diversity is important
He is not as stupid as you think
A couple of comments here have already hit on it - the real important point is asset classes. Diversifying by splitting money between ten different cryptos is not really diversifying. If crypto went bust, you'd lose everything. Splitting between crypto, real estate, precious metals, equities etc is real diversification. But we each have to choose our risk tolerance level and how we want to allocate between classes.
Great topic to discuss here, because I think that this is something fundamental to people being attracted to crypto. It involves the idea of financial literacy. Most people do not learn in school how to handle money and invest, but many people seem to be really gaining an interest in it and learning about the process through crypto.
Diversification is the name of the game, especially for us small fries. It really does not pay to put all our eggs in one basket, even though the brave ones who do sometimes reap quite bountifully. Am sticking with a diversified investment portfolio
I think property sale or purchase is best business.This business gives your more profit.That is most popular business in pakistan.Pakistani properties dealer spend very good life.Crpto business also to good.Purchase the coins in small price and waiting for price going up.And coins gived you more profit.Hopefully big invester come and invest money in crypto.And coins rate going up soon.Thanks for sharing this valuable video.I also subscribed your youtube channel.
I agree with you about people starting to get interest in investment at the later age with some exceptions, of course. One of the reason is to protect yourself against inflation. With today’s low interest rates, it doesn’t make sense to keep money in the bank. I personally am hard believer in diversification. Being invested in property (I heard your seller pulled off unfortunately 😞), some precious metals and of course some crypto. Mentioning crypto, it looks like we are at the bottoming stage finally. In my opinion, it’s very safe to invest in crypto now, if anyone haven’t yet. No one talks about crypto much, even I don’t look at my portfolio every single day anymore lol. No doubt in my mind, crypto holders will be rewarded, that hasn’t changed. Definitely yes, I’m self educated as well when it comes to investing. I think it’s the best way to do it, to believe in yourself and in whatever you invest in.
"Do not put all your eggs in one basket", this is probably the proverb that must be used to guide your investment decisions. Indeed, the diversity of the subscribed products is a guarantee of security.
To ensure the sustainability of your capital regardless of the trend of the markets invested, it is essential to diversify your investment funds. The strategy to adopt in terms of diversification can be summed up in one word: the correlation.
The goal of diversification is to avoid too much correlation between the products that make up your investment portfolio to minimize the risk of loss of capital. Diversifying your investment funds means choosing products in different asset classes: media in euros, bonds in euros and other currencies, European, American and Asian equities..
Although I respect your perspective, I think diversification is still important because despite being an expert in any one niche, markets work in cycles as we have seen this year that could hinder your ability to earn if too invested in your area of expertise. For example, I have countless stories of executives that made a great salary and also had a lot of stock in their company. These were experts but relied on one source of income and when the Company went under or experienced challenges; they could lose it all, salary and savings. I think it is important to be diversified but be careful to not overdiversify which could dilute the results of your knowledge.
Any serious investor would tell you that diversification is the key to stabilizing your portfolio, but it's crypto! Go hard or go home. 😂
In all seriousness, if you're just playing with a couple hundred dollars... Take some chances and seeing for the fences. If you're investing a big portion of your savings, diversify. Show and steady wins the race.
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