Inflation vs Investment Returns

[Little Princess]

Exactly. Too many people think more is always better. Smart investing isn’t about spreading yourself thin—it’s about focusing on a few strong positions and understanding them well.

Yes sir

 

[Little Princess]

What's your definition of diversification and over diversification?

Over diversification is when you spread yourself too thin. You can't and shouldn't be everywhere.

 

[Vicole]

What's your definition of diversification and over diversification?

I will say that diversification is spreading your money across a few solid investments to reduce risk, so one bad move doesn’t hurt your whole portfolio.
Over-diversification is when you spread too thin across too many assets, making it hard to track and reducing your potential returns.

 

[Vicole]

Honestly o. Purchasing power eroded

Like...it's always good to check if one's investment supercede inflation rate

 

[Little Princess]

I will say that diversification is spreading your money across a few solid investments to reduce risk, so one bad move doesn’t hurt your whole portfolio.
Over-diversification is when you spread too thin across too many assets, making it hard to track and reducing your potential returns.

Spot on.

 

[Vicole]

Yeah

Absolutely

 

[Vicole]

I agree

Thanks

 

[Vicole]

I agree with you

Over diversification is when you spread yourself too thin. You can't and shouldn't be everywhere.

 

[Little Princess]

Thanks

You are welcome

 

[Little Princess]

I agree with you

Thanks

 

[Vicole]

You are welcome

Yeah

 

[Ugobeauty]

Spot on.

I will say that diversification is spreading your money across a few solid investments to reduce risk, so one bad move doesn’t hurt your whole portfolio.
Over-diversification is when you spread too thin across too many assets, making it hard to track and reducing your potential returns.

Apt

 

[Vicole]

Apt

Thanks