Small Portfolio, Big Impact: Rethinking Diversification

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Hey, everyone! If you start diversifying your investments from the get-go, especially if you don't have much money, you could be causing more harm than good to your finances.

In this clip:

  • Don't get caught up in diversification
  • Focus on understanding your investments
  • Invest enough for the percentage of gains to make a difference

Diversifying might seem like a good idea to get exposure, but what it causes is not having enough of one asset for its growth to significantly increase the value of your portfolio. Having thirty assets worth only a couple of dollars will not have the same impact as having one or just a couple of sizable investments.

Get to know your investments, have a small portfolio you know a lot about, do your own research, and feel confident in your choice. Make your buying strategy and follow it.

The size of the investment matters. Even if you can only put a couple of bucks a week into it, focusing on an investment can make it grow big enough to make a difference when its value improves.

Posted Using INLEO

hive-167922 MARKETS INVESTMENT PORTFOLIO CTP PALNET NEOXIAN ONEUP
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4 comments
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100% correct and why I only have 4 main ones in my portfolio. Rather have more of less than less of more because the you have given yourself a good chance of doing well this way.

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I like this idea it's so true. I only have three coins in my portfolio, Hive, LEO and Bitcoin because it’s easier for me to learn about them and not get confused

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The important thing about investing is not to have correlated investments.

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