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Diversification is for poor people
by ldjkfkdsjnv 2y ago
Diversification is for poor people
- toomuchtodo 2y agoYou concentrate wealth to get wealthy, you diversify to stay wealthy.
- cpach 2y agoWhy is that?
- ldjkfkdsjnv 2y agoNobody gets rich from diversification. Its just what they tell uneducated people so that they dont take on huge risk
- johncreatescode 2y agoSo it's better to stick with it and focus your energy on one thing?
- jmcgough 2y agoIdk, keeping spending low and pumping everything I could into index funds worked really well for me with minimal risk. When you come from a poor background and can't bounce back as easily from setbacks, you may have a different risk profile.
- cpach 2y agoThis statement is so general that I feel it doesn’t really say anything. It’s true that Larry Ellison didn’t become a billionaire by buying and holding index funds. But for people who don’t feel a strong desire to buy their own yacht, index funds can be a very good investment.
- dosinga 2y agoOr the sophisticated. A diverse portfolio has lower volatility, which means you can leverage it more which then leads to higher expected returns