Smart investors use smart diversification. Used well, diversification reduces portfolio risk. Diversifying well to reduce risk requires knowing how to make diversification choices and selections. The best diversification choices reduce risk without sacrificing portfolio performance. Too much diversification can ensure a portfolio underperforms the market without providing greater risk reduction. This post begins the Smart Diversification series from the White Top View blog that outlines how smart investors use smart diversification.
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Investors Prosper With Wealth Building Pyramid Portfolios. Pyramid portfolio strategy is one of the best things a new investor can learn. Investors can build financial security and retirement independence using the pyramid inspired portfolio approach. Any investor from the newest beginner to the most knowledgeable, advanced and experienced, can learn and use the pyramid portfolio strategy. No job or employment can possibly pay you as well, over a lifetime, as investing can. You will gain more from the hours used to learn and manage your own investments than from any other activity in your lifetime.
Warren Buffett explains the investment value of gold. Warren Buffett explains his view of gold in a 2011 letter to shareholders. He makes the point that buying productive assets is an essential for investing success. Gold produces nothing. Good investments grow; they produce. We need to plant good investment seeds in our portfolio. Those are our well researched positions. Then we carefully attend to our portfolio to see it grow.
Although you can be a little bit invested you should not be casual about where or how you invest. Investment thinking means carefully considering even a small investment. Consider it as seriously as you would if buying the entire company. You don’t want even a small bit or single share unless it would be worth your while owning it all. Warren Buffett teaches us, “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.” That point of view starts you thinking like a capitalist. Your first obligation as a capitalist; always keep your money safe.