Well, personally I used to be a ALL IN style investor. Why should we waste so many time and effort to invest in several stocks while we are allowed to choose the best one and all in? However, over the time with more investing experience, the ALL IN strategy doesn't sustain throughout our whole investment journey. If we ALL IN, we are not allow to make any single mistake else we will catch by a big Hit!

Even though we are 100% sure that the company is doing well, but we never know if there will be any unexpected black swam issue that might simply cause the stock to plunge suddenly. So, by diversify your portfolio, you distribute the potential risk and it is more sustainable to invest this way in long run.

Diversification is a risk management strategy that creates a mix of various investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt to limit exposure to any single asset or risk.      

# All in One Stock vs. Diversify Risk?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment1

  • Top
  • Latest
  • icycrystal
    ·03-08
    thanks for sharing
    Reply
    Report