{"id":4655,"date":"2022-06-08T13:13:58","date_gmt":"2022-06-08T20:13:58","guid":{"rendered":"https:\/\/moneyripples.com\/?p=4655"},"modified":"2024-05-21T15:39:02","modified_gmt":"2024-05-21T22:39:02","slug":"does-diversification-really-work-615","status":"publish","type":"post","link":"https:\/\/moneyripples.com\/money-ripples-st\/?p=4655","title":{"rendered":"Does Diversification Really Work | 615"},"content":{"rendered":"\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Does Diversification Really Work? | 615\" width=\"1778\" height=\"1000\" src=\"https:\/\/www.youtube.com\/embed\/-RHr-vM-Am4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><strong>Listen to the episode now! <\/strong><\/h2>\n\n\n<div class=\"components-placeholder\"><div class=\"notice notice-error\"><strong>RSS Error:<\/strong> WP HTTP Error: A valid URL was not provided.<\/div><\/div>\n\n\n<p>Financial advisors tell you to diversify your investments, but successful investors like Warren Buffet say don\u2019t do it. What are you really supposed to do? Should you diversify or not? Does diversification really work? How do you truly diversify your investments? <\/p>\n\n\n\n<p>Listen to this episode to find the answers to your questions about diversification and to better understand what you should do to have a diversified investment portfolio! <\/p>\n\n\n\n<p>Quotables <\/p>\n\n\n\n<p>\u201cThe truth is, you still lose money. Why? Because you\u2019re not really diversifying, because you\u2019re buying in the same asset class of equities, stocks, and things like that.\u201d <\/p>\n\n\n\n<p>\u201cFor those of you that are in the market right now, you\u2019re already looking at possibly a 20% loss, maybe more if you\u2019re not even getting the market returns.\u201d <\/p>\n\n\n\n<p>\u201cDiversification, as practiced generally, makes very little sense for anyone that knows what they\u2019re doing. It is a protection against ignorance.\u201d &#8211; Warren Buffet <\/p>\n\n\n\n<p>\u201cWhen you don\u2019t know what you\u2019re doing, just throwing your money at everything is a bad strategy.\u201d <\/p>\n\n\n\n<p>\u201cIf you think about it from a monetary standpoint, if one is bad, it\u2019s worthless.\u201d <\/p>\n\n\n\n<p>\u201cMaybe a few of them won and a bunch of them lost, you might be feeling grateful you lost a little bit less, but the truth is, people don\u2019t really see that.\u201d <\/p>\n\n\n\n<p>\u201cWhenever you see the stock market do something, people\u2019s returns are typically less, even if they buy the S&amp;P 500 which is supposedly supposed to be diversified.\u201d <\/p>\n\n\n\n<p>\u201cThe S&amp;P 500 is not equal across the board with the stocks they have. There\u2019s no weighted average there.\u201d <\/p>\n\n\n\n<p>\u201cEven when people are losing money in crypto, some people have made money in crypto because they went deep and they really understood that asset class.\u201d <\/p>\n\n\n\n<p>\u201cThe problem is, and this is what financial advisors took advantage of, is that most of us don\u2019t wanna become financial experts in certain areas, so as a result we just kinda throw spaghetti on the wall and hope something works.\u201d <\/p>\n\n\n\n<p>\u201cIf you look at those 4 asset classes &#8211; business, real estate, paper assets, and then of course, the last one is commodities.\u201d <\/p>\n\n\n\n<p>\u201cReally, everything that a financial advisor offers you is a paper asset.\u201d \u201cHe goes in specific markets. They are diversified, but he\u2019s not investing in everything. He\u2019s investing in very specific sectors and he buys into those businesses.\u201d <\/p>\n\n\n\n<p>\u201cInstead of investing with 20, 30, or 40 people, I\u2019m gonna invest with maybe 5 people and that\u2019s it.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Listen to the episode now! Financial advisors tell you to diversify your investments, but successful investors like Warren Buffet say don\u2019t do it. What are you really supposed to do? Should you diversify or not? Does diversification really work? How do you truly diversify your investments? Listen to this episode to find the answers to <a href=\"https:\/\/moneyripples.com\/money-ripples-st\/?p=4655\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  Does Diversification Really Work | 615<\/span><\/a><\/p>\n","protected":false},"author":8,"featured_media":4658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cashflow-expert"],"acf":[],"rttpg_featured_image_url":{"full":["https:\/\/media.moneyripples.com\/wp-content\/uploads\/2022\/06\/08131444\/diversify.jpeg",1280,720,false],"landscape":["https:\/\/media.moneyripples.com\/wp-content\/uploads\/2022\/06\/08131444\/diversify.jpeg",1280,720,false],"portraits":["https:\/\/media.moneyripples.com\/wp-content\/uploads\/2022\/06\/08131444\/diversify.jpeg",1280,720,false],"thumbnail":["https:\/\/media.moneyripples.com\/wp-content\/uploads\/2022\/06\/08131444\/diversify-150x150.jpeg",150,150,true],"medium":["https:\/\/media.moneyripples.com\/wp-content\/uploads\/2022\/06\/08131444\/diversify-300x169.jpeg",300,169,true],"large":["https:\/\/media.moneyripples.com\/wp-content\/uploads\/2022\/06\/08131444\/diversify-1024x576.jpeg",1024,576,true],"tf-client-image-size":["https:\/\/media.moneyripples.com\/wp-content\/uploads\/2022\/06\/08131444\/diversify.jpeg",120,68,false],"1536x1536":["https:\/\/media.moneyripples.com\/wp-content\/uploads\/2022\/06\/08131444\/diversify.jpeg",1280,720,false],"2048x2048":["https:\/\/media.moneyripples.com\/wp-content\/uploads\/2022\/06\/08131444\/diversify.jpeg",1280,720,false],"bloom_image":["https:\/\/media.moneyripples.com\/wp-content\/uploads\/2022\/06\/08131444\/diversify-610x343.jpeg",610,343,true]},"rttpg_author":{"display_name":"Danielle Hollembaek","author_link":"https:\/\/moneyripples.com\/money-ripples-st\/author\/daniellehollembaekgmail-com"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/moneyripples.com\/money-ripples-st\/?cat=1\" rel=\"category\">Cash Flow Expert<\/a>","rttpg_excerpt":"Listen to the episode now! Financial advisors tell you to diversify your investments, but successful investors like Warren Buffet say don\u2019t do it. What are you really supposed to do? Should you diversify or not? Does diversification really work? How do you truly diversify your investments? Listen to this episode to find the answers to&hellip;","_links":{"self":[{"href":"https:\/\/moneyripples.com\/money-ripples-st\/index.php?rest_route=\/wp\/v2\/posts\/4655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneyripples.com\/money-ripples-st\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneyripples.com\/money-ripples-st\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneyripples.com\/money-ripples-st\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/moneyripples.com\/money-ripples-st\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4655"}],"version-history":[{"count":6,"href":"https:\/\/moneyripples.com\/money-ripples-st\/index.php?rest_route=\/wp\/v2\/posts\/4655\/revisions"}],"predecessor-version":[{"id":10694,"href":"https:\/\/moneyripples.com\/money-ripples-st\/index.php?rest_route=\/wp\/v2\/posts\/4655\/revisions\/10694"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneyripples.com\/money-ripples-st\/index.php?rest_route=\/wp\/v2\/media\/4658"}],"wp:attachment":[{"href":"https:\/\/moneyripples.com\/money-ripples-st\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneyripples.com\/money-ripples-st\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneyripples.com\/money-ripples-st\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}