Diversification

Discussion in 'Share Investing Strategies, Theories & Education' started by Tropo, 18th Aug, 2008.

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  1. Tropo

    Tropo Well-Known Member

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    Diversification
    Definition

    A portfolio strategy designed to reduce exposure to risk by combining a variety of investments, such as stocks, bonds, and real estate, which are unlikely to all move in the same direction.
    The goal of diversification is to reduce the risk in a portfolio.
    Volatility is limited by the fact that not all asset classes or industries or individual companies move up and down in value at the same time or at the same rate.
    Diversification reduces both the upside and downside potential and allows for more consistent performance under a wide range of economic conditions.

    diversification Definition
     
    Tropo, 18th Aug, 2008
    #1
  2. crc_error

    crc_error The Rule of 72

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    I don't think people here like diversification! :)
     
    crc_error, 18th Aug, 2008
    #2
  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    Once again you are mis-representing what people say *sigh* :rolleyes:
     
    Simon Hampel, 18th Aug, 2008
    #3
  4. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    crc,

    Reading your posts over the last few days have reminded me why I decided to ignore you way back when. Thanks for the reminder.

    Mark
     
    Mark Laszczuk, 18th Aug, 2008
    #4
  5. crc_error

    crc_error The Rule of 72

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    no worries, my contributions to this forum will be withdrawn.

    Have a nice day.

    {edit} all comments removed.
     
    crc_error, 18th Aug, 2008
    #5
  6. BillV

    BillV Well-Known Member

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    CRC

    I do, it's just that I see no much point in diversifying when nearly all asset classes are coming down.

    IMHO It's best to concentrate my investments on the best sector till the markets have settled.

    Cheers
     
    BillV, 18th Aug, 2008
    #6