Thread: Diversification
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Old 12-04-2005, 10:32 AM
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Default Re: Diversification

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Put 20% in bonds, the rest in 5-10 stocks and experience the magic of compounding.

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Also known as 'diversification'

Other than you saying that my strategy 'isn't smart' do you have any other thoughts to add on why?

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Sorry mate, I was referring to that you donīt have to diversify
in the sense of investing in 20+ stocks,mutual funds,bonds,t-bills, or index funds.

But it would still not be smart to invest in just 1 venture. There is no such thing as a sure thing, you are simply not getting the return that justifies the risk.

Are you implying that if you invest in more than 1 venture, say two stocks, than that is 'diversification' ?
Surely not.

In the end it all comes down to how much money you have.
If it is $1000, then go ahead and throw it at 1
stock/venture.

If you however have say $100,000-$1,000,000 Than you have to be more passive.

Thatīs just my opinion
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