Among your most important financial friends is diversification. After all, what other single action can you take to simultaneously dampen your exposure to a number of investment risks while efficiently investing toward your personal financial goals? While they may seem almost magical, the benefits …
The Business of Investing
With all the excitement over stocks and bonds, and their ups and downs in headline news, there is a key concept often overlooked: Market returns are compensation for providing the financial capital that feeds the human enterprise going on all around us, all the time. When you buy a stock or a …
Avoidable, Concentrated Risks and Unavoidable Market-Related Risks.
Before we even have words to describe it, most of us learn about life’s general risks when we tumble into the coffee table or reach for that pretty cat’s tail. Investment risks aren’t as straightforward. Here, it’s important to know that there are two, broadly different kinds of risks: avoidable, …
