Hello everyone, I hope this message finds you in good health and high spirits. Today, I'm excited to share my perspective on portfolio concentration and diversification, concepts that are often seen as two sides of the same investing coin. Financial advisors, almost uniformly, advise diversification as a safeguard against market volatility. But is diversification really the golden ticket? Let's delve deeper and find out.
I can't believe Warren Buffet said that, but it does make sense. I've heard it before. There are also other kinds of diversification like Options trading as opposed to just buying stocks or ETFs outright. Within options you also want to diversify your expiration dates, strategies, and long/short delta.
Thanks for the link!
I can't believe Warren Buffet said that, but it does make sense. I've heard it before. There are also other kinds of diversification like Options trading as opposed to just buying stocks or ETFs outright. Within options you also want to diversify your expiration dates, strategies, and long/short delta.
Agree, there can be different approaches to diversification. I think usually it depends on the investing style and how the person defines the risk for himself. The quote was takes from here - https://www.forbes.com/sites/karlkaufman/2018/07/24/heres-why-warren-buffett-and-other-great-investors-dont-diversify