Get Inspired by a Few Quotes about Diversification of Your Investments (Putting Your Eggs in Multiple Baskets Instead of Just One)
It’s Monday and what better way to start the week than by gaining inspiration from a few quotes about diversification of your investments? I am a big believer of diversification of your assets/investments since it gives me peace of mind and it reduces overall risk. Investing is not my full-time job, so I don’t have all the time of the world to make sure I know everything about everything.
Here are five quotes about diversification of your investments that you might like. I tried to pick a few lesser-known ones. Also, definitely leave your personal favourite in the comments, even if is not in this list ;-)
“The beauty of diversification is it's about as close as you can get to a free lunch in investing.” - Barry Ritholtz
“Here is part of the tradeoff with diversification. You must be diversified enough to survive bad times or bad luck so that skill and good process can have the chance to pay off over the long term.” - Joel Greenblatt
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” - Robert G. Allen”
“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” - Paul Samuelson
And since it is always good to hear to what people have to say who don’t share the same ideas:
“Diversification is something that stock brokers came up with to protect themselves, so they wouldn't get sued for making bad investment choices for clients. Henry Ford never diversified, Bill Gates didn't diversify. The way to get rich is to put your eggs in one basket, but watch that basket very carefully. And make sure you have the right basket.” - Jim Rogers
Basically it is about finding the right level of diversification and the right assets for you. How high is your risk-tolerance level? :-)
Be inspired!
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Disclaimer: I am not a financial advisor, trader or developer. I am just a blockchain & cryptocurrencies enthusiast. Make sure you do your own research, draw your own conclusions and do not invest any money that you cannot afford to lose.
Hell yah good post.
Our crew has recently gotten into diversification of our portfolio when we initially just HODLed ETH and a bit of hedging into BTC.
I would like your thoughts but we have diversified into a couple relatively new coins that have proof of stake with the premise that they might be more stable in times of instability, and reward the hodling.
Additionally, we short term diversify in major coins that have forks coming up, and in a second GPU mined coin (that we can mine directly and avoid exchange charges.)
I also personally like to have a privacy coin as part of my core as they seem to do well short term and may really take off if regulation heats up.
Thoughts?
Sounds like you guys already have put in some thought, nice!
I don't have any particular thoughts on this, all is personal. I try to share some of my thoughts on my crypto portfolio every once in a while in my portfolio updates and the 70/30 approach I use.
In the future I might go into more detail about other assets as well since I feel it is nice to have some investments besides crypto.
Privacy coins are interesting and is a niche that serves a need from the beginning. I currently only have Monero and used to have Pivx and Verge. You might be right about those regulations making privacy coins more attractive. On the other hand, I actually think it is also a bit risky if a coin only does privacy (and functions also as currency of course). Big projects with more use cases might build in privacy as well (like Zksnarks into Ethereum or smth), then the privacy coins lose their edge.
We'll see how it goes!
I agree 100%.
When investing we need to spread the risk, have a diverse portfolio.
Personally I even have time defined portfolio books, so I have a longterm book, a midterm book and speculation trades. I find that is the safest and most profitable way to invest:)
That sounds cool. Could you tell a little bit more on how it works with those 'books'? How did you come up with them and how do you use them?
Well, it's just forex lingo for portfolios.
In my longterm portfolio I have funds and BTC. I used to invest in forex carry trades, but they are more uncertain now. Since my other investments rely more on USD I tend to avoid american or tech funds.
Midterm is commodities, indicies and fiat currencies. I avoid markets with a negative daily interest swap, but other than that all good prospects are fair game:)
Short term I normally trade currencies. Since I hold my positions for only a few hours I normally do not worry about swaps, but I pay attention to the spread.
Cheers!
Ahh, now I get it. Sorry, was not familiar with the term ;-)
Sounds like a good build up man! Would be awesome to be able to read about your adventures within your total portfolio. Are you planning to write about it one Steemit?
That is actually a good idea:)
I might write about my investment approach in a more general way. I am not sure if sharing actual positions is a good idea since newbies might misinterpret it as investment tips...
What I am planning to post is a 6 to 10 post trading course to introduce newbies to the consepts of trading and money management.
Cheers!
True, you'll have to find the right balance between sharing everything or nothing. Things don't have to be super detailed for people to be able to learn from it. I am also cautious with sharing exact details :-)
Good luck!
@cryptotem.
Introducing variety especially in investments limits one's losses (if one is losing) and multiplies the profits (if one is gaining).
I'd recommend variegation of investment any day, anytime.
Thanks for sharing those great quotes. This one got me really excited ;
👇 👇 👇 👇
Well, technically diversification limits losses and gains but it limits losses more than gains if that makes sense. 3 assets that have a maximum rate of return of 30%, 20%, and 10%, then an equally proportioned portfolio will yield 20% at maximum, whereas if you only invested in the 30% asset your maximum is 30%, but you are more vulnerable to the risk specific to that asset.
True that!
Yeah, I don't lie on days ending with 'y'.
😂 😂 😂
Thanks again for sharing @cryptotem
I agree completely! Diversification yields long term gains.
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