what does it mean to diversify your portfolio and how is this done? I have recently been introduced to the stock market and everyone keeps saying make sure you diversify your porfolio, but im not sure what that means
2007-12-19 13:59:42 · 5 answers · asked by Sir Feti 2 in Business & Finance ➔ Personal Finance
Don't just buy one stock. Don't just buy in one sector. Spread your money around. If you just buy in one Stock...like Enron...and that company goes under...you severely lose out. If your money is invested in multiple companies or types of financial product...one bad investment is not going to kill your whole portfolio.
2007-12-19 14:03:02 · answer #1 · answered by BAM 7 · 0⤊ 0⤋
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Putting your assets, stocks, bonds, mutual finds, commodities,,etc. into various investments rather than having all your money in one investment. This lowers your risk of loss. Your portfolio is all of the above type assets. Those with a substantial portfolio normally have a money manager or financial advisor.
2016-04-07 04:01:52 · answer #2 · answered by Michele 4 · 0⤊ 0⤋
Those new to investing should be careful not to invest too much money into one stock. Invest 5% your money into 20 different stocks or 10% into 10 different stocks.
2007-12-19 17:06:39 · answer #3 · answered by northnode3g 3 · 0⤊ 0⤋
Buy a stock in Materials, Tech, Mining, Food, retail sectors.
2007-12-20 10:40:35 · answer #4 · answered by Steve R 6 · 0⤊ 0⤋
dont put all your eggs in one basket. lol...you dont wanna invest all you got in one thing..cuz if it goes down youll lose it all.
2007-12-19 14:03:06 · answer #5 · answered by nikkylyn 5 · 0⤊ 0⤋