Constructing an investment portfolio is not as easy as it looks.
And this task just got much more difficult during this pandemic.
COVID-19 initially started as a health crisis, but its impact has led to many countries to suffer sharp economic losses.
More than ever, it has highlighted the importance of being diversified.
While there are proponents for and against diversification, I argue that almost all retail investors need some level of diversification within their investment portfolios.
Let’s take a look at some compelling reasons for doing so.
It’s for the birds!
In author Mark Tier’s popular book “The Winning Investment Habits of Warren Buffett and George Soros”, he says that master investors believe that “diversification is for the birds”.
In a nutshell, the argument is that experienced investors need not adhere to the normal rules for diversification.
With their expert knowledge and savvy, they can concentrate their firepower on just a few winning positions....