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Focus on asset allocation from "summary" of A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition) by Burton G. Malkiel
One of the key principles emphasized in this work is the importance of asset allocation in successful investing. Asset allocation refers to the division of investment funds among different asset classes, such as stocks, bonds, and cash equivalents. The idea behind asset allocation is to spread risk across a variety of investments in order to achieve a balance between potential returns and potential losses. The concept of asset allocation is based on the recognition that different asset classes have different risk and return characteristics. By diversifying across asset classes, investors can reduce the overall risk of their portfolios while still potentially earning competitive returns. This strategy is often referred to as the "free lunch" of investing, as it allows investors to achieve a higher level of risk-adjusted returns without taking o...
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