Diversify, Diversify, Diversify?
your portion to seven, or even eight, for you do not know what misfortune may
occur on the earth."
you heard of stories about people earning millions and you thought they had it
all made, when suddenly they are declared bankrupt? And you wonder to yourself
"what happen?". A typical mistake is to dump all your money into an
investment and then when it sours up, you lose everything. Failure to diversify.
those who mock diversification and almost treating this concept with contempt.
But what does the Bible say? Ecclesiates 11:2. Diversify.
is spreading your money among many difference types of investment. When you do
this, you lower your overall risk. There are many ways to diversify. You can diversify
by spreading your assets, diversify with different investment styles, diversify
by geography, and so on and so forth. I will go into some details.
by assets can be in the form of stocks, real estate, bonds, cash, and even precious
metal like gold and silver. However, diversification does not mean you jump into
it blindly. Do your research first.
by investment styles can be in the form of value-driven investment, market orientated
investment, and small capitalization investment.
estate represents an investment that can benefit from geographical diversification.
International investments comprise another asset class that could and should be
invested geographically. Emerging markets may offer excellent growth potential.
your investment, remember to diversify. That because calamities and misfortunes
can occur on the earth anytime.
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