Diversification: Are you truly diversifying or are you “diworsifying?”
By Investing Beanstock  •  September 25, 2020
Join My Tele Channel HereDo not put all your eggs in one basket.” We hear this phrase all the time when it comes to investing. Although diversification is a good thing for most investors since it reduces concentration risk and allow the investor to sleep soundly at night in most cases. However, diversification and all the jargons that Business Schools teach today (eg. Capital Asset Pricing Model, Modern Portfolio Theory, Random Walk Theory, Portfolio Diversification etc) are some of the most misguided concepts in the real world of investing. That is not to say that what the professors are teaching are bullsh**t, but merely that these are concepts and theories which help students better understand the world of finance and investments. Wide diversification is only required when investors do not understand what they are doing.Warren Buffett Most investment professionals would agree that although diversification is no guarantee against loss, it...
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By Investing Beanstock
Investing Beanstock incepted as a platform for me to share my knowledge on investing and personal finance. As investing is a long term process, just like planting a bean, it takes time and effort before it can grow exponentially and be rewarded like Jack (and the beanstalk).

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