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People diversify portfolios out of ignorance, not prudence. If you don’t have any special knowledge that lets you favor one company over another, then you might
by xwdv 5y ago
People diversify portfolios out of ignorance, not prudence. If you don’t have any special knowledge that lets you favor one company over another, then you might as well pick a bunch of them. But if you know one company is a good bet for specific reasons, it makes sense to lean your portfolio heavily on it. That is how you get so rich.
- isbvhodnvemrwvn 5y agoOr homeless.
- Thrymr 5y agoThat is still doubling down on risk, so diversifying is indeed prudence. Even a good bet is not a sure bet, particularly if it has a chance of high payoff.
- xwdv 5y agoTruly good bets are rare. When you find one, you should double down. If you do this every time, you will come out ahead most of the time, if they are truly good bets.
- winterplace 5y agoYou are right but people are downvoting you lol. Do you have an email address or a contact method?
- xwdv 5y agoWhy would you ever want to contact me