Stay diversified to minimize risk in your portfolio from "summary" of Random Walk Guide To Investing by Burton G Malkiel
Diversification is a key principle in investing. By spreading your investments across different asset classes, industries, and geographic regions, you can reduce the risk of your portfolio. This means that if one investment performs poorly, the impact on your overall portfolio will be minimized because other investments may perform better. One way to achieve diversification is through mutual funds or exchange-traded funds (ETFs) that invest in a wide range of securities. These funds hold a mix of stocks, bonds, and other assets, providing you with exposure to different areas of the market. By investing in these funds, you can benefit from diversification without having to pick individual securities yourself. Another way to diversify your portfolio is by investing in different types of assets, such as stocks, bonds, real estate, and commodities. Each asset class has its own risks and returns, so by holding a mix of them...
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