8 ms·
An undiversified portfolio maximizes possible upside … and possible downside. If you have a rational level of risk aversion, that should persuade you to strive
by elgenie 9y ago
An undiversified portfolio maximizes possible upside … and possible downside. If you have a rational level of risk aversion, that should persuade you to strive for balance and a more certain return.
The fact that in this case the portfolio is of "life elements" rather than "shares of companies" shouldn't change the conclusion.
- landon32 9y agoI disagree- when doing something in life you can tell very quickly how it makes you feel, but when investing in a company it can be difficult to see how the company will do.