To Reduce Your Risk, You Must Diversify Property Myth Uncovered… Just A Thought

To Reduce Your Risk, You Must Diversify Property Myth Uncovered… Just A Thought

It is often suggested by financial planners that you should have many types of investments, such as shares, superannuation and property.  However, some experts say that diversification can lead to an average outcome.  Research has shown that many successful investors don’t diversify, but cultivate the skills required to make better, smarter investing decisions and specialise in one niche investment market.  Here’s what some experts say about diversification:

“Wide diversification is only required when investors do not understand what they are doing” Warren Buffett

“Many financial advisors recommend that you diversify for your own protection. What they fail to tell you is that it is also for their protection. Since most financial advisors cannot tell you exactly, which stock or mutual fund is a great investment, they tell you to buy a bunch of them.”
Robert Kiyosaki

 

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