Diversification. The word you would have come across when you first started investing. But, what does it really mean, and more importantly, are we doing it right? I’m currently reading Intelligent Investor (After 3 years of investing.. A little late, I know haha!) and I must say, I have been renewed in my mindset in a lot of ways and on many different matters. I’m only like 20% done with the book but I’ve picked up many valuable principles and perspectives that I’ve never considered before.
Why I’m writing this post is because I felt that many of us although have heard about diversification, we might have been doing wrong. Is diversification just buying a bunch of stocks or the STI ETF? If the point of diversification is to protect an investor from extreme fluctuations or even a market crash, then something is wrong. Most people I know who say ......