Quote Of The Week: When Diversification Hurts

diversification pizza

Who said diversification was easy? It might just mean embracing the losing investments in your portfolio.

“You are only diversified if some of your investments are performing worse than others. Losing money on even a portion of your portfolio is hard for some people to swallow, so they gravitate toward what is performing well at the moment, often at their own expense.”

Morgan Housel, “16 Rules for Investors to Live By,” The Wall Street Journal, December 8, 2015

 

 

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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