Alright, I have finally accomplished my task. Currently as you may or may not know, my portfolio has stocks from 4 different sectors. ATVI is videogame/technology, BAC is a bank, NUE is industrial metal, and BRK-B is... well who knows but its safe to say it doesn't fall in any of the previous categories.
So as you can see, BRK-B is not doing well, it is down from my original buying price...
But my overall portfolio is seeing the highest gains I have ever seen, being about 6.7%.
And that is why you diversify...
I have read arguments on both sides of the diversify table. What I have gathered from them is...
DO NOT DIVERSIFY FOR DIVERSIFYING SAKE.
It is not wrong to diversify your portfolio if you are investing in companies that you know and trust, but it is wrong if you are diversifying in random sectors you know nothing about, simply for the sake of diversification. So know who your investing in and why (or have a stock advisor tell you how to think, like I do... haha).
And that brings up another good point. Now maybe I am just an investing nut, and want to see everyone well invested, but...
Why is it that most people are only invested in the companies they work for? I know, stock options are great and of course you want to use those, but especially in times like this, do you really want all your investments being in a single basket?
Now please don't go telling people to sell the shares in the company they work for, I am not saying that. But maybe mention that it might be wise to make future investments outside of the company where they work.
Case in point, Lehman Brothers, Enron, and any number of banks and car companies in the past 2 years. Do you think the people working for these companies had outside investments?
Enough said.
-tCT
No comments:
Post a Comment