Dec 20, 2007

Diversification

Diversification is, on the surface, a simple concept and we are not
going to spend a lot of time explaining it or why it is a good idea,
because we think that is a given.
The idea is that your portfolio needs to have something that is
going up when other parts of the portfolio are going down.
Knowing that something in your portfolio is likely to go up no
matter what will make it easier for you to sleep. And diversification
can protect your portfolio from absolute routs.

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