Friday, June 15, 2012

Why diversify?

Diversification helps you reduce risk. Dont put all your eggs in one basket. Invest in assets with negative correlation so over a long term your returns do not get affected. Etc etc. I think diversification is for the safe guys. You want to make it big, there is hunger to reach the sky sooner, then this belief cant work for you. It is a fallacy. Read. Research. Speak. Understand. And take a positional one way bet. You will make it on either one side. If your on the bright side, glory, hindsight, wisdom - all yours. If you land up on the not so bright side, atleast you failed in glory. He who takes the safe path shall never fully experience life. Or will they?

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