Spreading the Love or Betting on the Champ in a Hot Industry?
Welcome to Thursday Special!
When it comes to investing, there's this intriguing question:
Do you diversify your investment by buying several stocks in the same industry, or do you go all-in on the strongest player in the game?
It's like choosing between spreading your bets or putting everything on the winning horse – a conundrum that speaks volumes about an investor's risk appetite, return expectations, and market outlook.💡
Well, by diversifying, you're like a superhero with a shield, protecting yourself from the blows of a single company's poor performance. Different companies, different strokes – they say. Plus, each company might have its own secret sauce, excelling under various market conditions. It's like having a diverse squad ready to tackle any market challenge.
On the flip side, those who prefer putting their money on the absolute best performer in the industry. These investors believe that concentrating on the top player allows them to ride the waves of that company's success without being dragged down by the underperformers. After all, the strongest companies usually come armed with killer competitiveness, rock-solid finances, and management teams that know their stuff.
Diversification might soften the punches, but does it sacrifice some of the thrill of big wins? On the other hand, putting all your chips on the champ could mean a wild ride, with the potential for huge rewards and, of course, heart-stopping moments.
So, what's your play? 🚀💸
Wishing everyone a prosperous new year filled with successful trades and investment opportunities![Heart]
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Always choose the right stocks that you are familiar and the leaders of the industry.
Keep accumulating along your investment journey.
During the dips. do not panic sell, instead buy in batches to build up even more.
Along the way, you may take some profit when the stock reaches all time high and there is valid signals for a pull back.
Last but not least. remember to give some profit back to your community.
The well being of all makes the world a better place for everyone.
May the market be with you.
@icycrystal @koolgal @JC888 @TechnicalHunter
Some into cash cows like insurance
Some into qqqm
Looking into more crypto now $GOOGL 20241220 130.0 PUT$
🌟🌟🌟When it comes to investing, I love to spread the love rather than pinning my hopes on a single stock even if it is a Champion. My favourite way to invest is through ETFs. I like the plain vanilla ones like $SPDR Portfolio S&P 500 ETF(SPLG)$ which track the S&P500. So in just 1 trade I gain instant access to 500 of the strongest and best stocks within the S&P500 universe.
This includes all of the Magnificent 7 which have gone up so much in 2023. They are $Apple(AAPL)$
Meta Platforms and Google.
The Magnificent 7 were the best performing stocks in 2023 as they have wide moats, have strong balance sheet and are profitable. Most importantly they have excellent management team too.
When I invest in SPLG, I have the power of 500 stocks which offer great diversification and at the same time, I minimise my risk in investing in single stocks. With an expense ratio of just 0.02% which is the lowest among all ETFs, I also get to collect dividends every 3 months. The current dividend yield is 1.4%.
So when I invest in an ETF I can have my cake and eat it. It is a Win Win situation! That's my favourite way of investing!
@MillionaireTiger @TigerStars @Tiger_comments @TigerPicks @TigerClub
嗯，通過多元化，你就像一個拿着盾牌的超級英雄，保護自己免受單個公司糟糕業績的打擊。他們說，不同的公司，不同的方式。此外，每家公司可能都有自己的祕方，在各種市場條件下都表現出色。這就像有一個多元化的團隊準備應對任何市場挑戰。
另一方面，那些更喜歡把錢押在業內絕對最佳表現者身上的人。這些投資者認爲，專注於頂尖企業可以讓他們駕馭公司成功的浪潮，而不會被表現不佳的企業拖累。畢竟，最強的公司通常擁有殺手級的競爭力、堅如磐石的財務狀況和精通業務的管理團隊。
My main investment is DCA strategy in indexes. And sub category is on individual stocks with business model that I believe in. On top of that, I do options trading too. That is how I diversify.
My main investment is DCA strategy in indexes. And sub category is on individual stocks with business model that I believe in. On top of that, I do options trading too. That is how I diversify.
@koolgal. @TechnicalHunter , @TechnicalHunter
The question should be: "Is this a good company for me to own?" I doesn't have to be THE winner, just A winner!
However, as you rightly pointed out, diversification does come with a potential downside – the dilution of big wins. When you spread your investments across various assets, the chance of any single investment making a substantial impact on the portfolio diminishes.
On the other side of the spectrum is concentrated investing, a strategy where an investor allocates a significant portion of their portfolio to a single asset or a few select investments. This approach is often associated with a higher level of risk and volatility but carries the allure of substantial rewards.