23 ms·
Absolutely. The concept of 'diversification' was fabricated to convince 'dumb money holders' to give up more cash. That's the sole purpose of diversification.
by 16s 14y ago
Absolutely. The concept of 'diversification' was fabricated to convince 'dumb money holders' to give up more cash. That's the sole purpose of diversification.
"You really need to diversify just a bit more. With as little as 50,000 dollars more, we can expose your portfolio to international rising growth stocks in Asia."
- davidmr 14y agoAre you being sarcastic? I genuinely can't tell.
- Bootvis 14y agoThat's the best kind. For those that might be confused. Diversification is a genuinely useful tool for an investor. Since it is very hard to tell which stock is going to perform well you have to spread your bets. Interesting literature on how to do this dates back to the 1952 paper 'Portfolio Selection' by Markowitz[1]. [1]: http://en.wikipedia.org/wiki/Harry_Markowitz#Selected_publications http://en.wikipedia.org/wiki/Harry_Markowitz#Selected_public...