George Divel Investment Tips

#4 Diversify

The notion  not to “put all your eggs in one basket” is probably the oldest piece of investment advice. It is also great advice.

Nobody, even the smartest investors can foretell the future but if you keep your investments diversified, you are protected because the odds of any one bad investment hurting hurt are greatly diminished.

If you ask an investor who has lost a great deal of money their greatest regret, it will likely be “I should have been more diversified. I should not have put so much into one investment.

Whether you are a small investor or have millions of dollars in assets, you won’t go wrong by starting your investment program with diversification as your goal

Talk to your investment advisor about what diversification means to you.  Some investors think it means buying different stocks. But there is much more to diversification than that.  A balanced portfolio should not only have diverse stocks or mutual funds, there should also be diversification between stocks and bonds. That’s why it is important to tell your financial advisor about all your assets, including real estate so that you can get advice to truly diversify your holdings.