what do you think about diversification ?
I think it lowers risk but it also lowers returns.
I think it lowers risk but it also lowers returns.
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DislikedPlease explain your opinion that diversification reduces profitability. For example, if I want to diversify my capital and invest in real estate, cryptocurrency and trade in commodities, then the risk of going bankrupt is already quite small.Ignored
Dislikedwhat do you think about diversification ? I think it lowers risk but it also lowers returns.Ignored
Disliked{quote} Hi, It's provable in standard investment theory that diversification across several assets always reduces overall risk compared to everything in one asset, but it is not automatically so that it reduces returns. Consider buying 20 shares in equal amounts compared to all in just one of them. You reduce the total risk simply by virtue of spreading that risk over the aggregate fortunes of 20 shares rather than all the risk being on the fortunes of just the one share. The return of the 20 will be the average of the 20 investments. Whether this...Ignored