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Consider your risk tolerance when selecting investments from "summary" of The Four Pillars of Investing: Lessons for Building a Winning Portfolio by William J. Bernstein
When selecting investments, it is crucial to take into account your risk tolerance. Risk tolerance refers to your ability to endure fluctuations in the value of your investments without panicking and selling at the wrong time. This is an essential factor to consider because different types of investments come with varying levels of risk. If you have a low risk tolerance, you may want to opt for safer investments such as bonds or certificates of deposit. These investments typically offer lower returns but are less likely to experience significant fluctuations in value. On the other hand, if you have a high risk tole...
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