Invest in Share - Be a Smart Shares Investor

The Intelligent Investor on Diversification

1) Not against ignorance.
2) Not reducing risk.
3) But to increase the chances of consistent winning on a portfolio basis. 

The exact definition of diversification have different meanings to different people. Some think if I have 10 stocks, I'm diversified, some think if I have 5 stocks in all different sectors, I'm diversified. That form of diversification is ok except those who hold 40 companies, that is "foolish"! What do an individual investor have the time to monitor 40 companies??? 

From what I understand, Warren Buffet has his own form of diversification, if you look at his holdings, he holds many stocks too but most of them are quality. I believe he is advocating towards quality, not quantity. He believes you should not diversify for the sake of minimizing your risk because if you don't know a company's business well, does it even make sense to invest and be a co-owner of it? That is the point I believe he is coming from and hence he said "diversification is for the ignorant" if you are knowledgeable about the companies you invest in, you can invest in any amount as long its within your control and within your knowledge. Even diversification needs knowledge as well!

In equity investing, making high-quality decisions in - (1) What to buy?, and (2) At what price to buy? - are far more important than making many decisions or even - When to buy? If one can buy into good stock or business that is worth $1 a share in intrinsic value which is going to grow further over time, but for only 50 cents, how not to make good money given enough time? 

Share Price Prediction With Well-Known Tools
The stock exchange is regarded as the pillars of capitalist economy for many countries around the world; many nations adhere to a good economic model that is market based and follows the concepts of........

Do And Not To Do During Shares Trade
To being, you should always have a straightforward plan and stick to it at all occasion. This means that you need to spend some time analyzing those actions happening on the stock market before planning the direction to go on the.......

Different Types of Technical Analysis
Times have changed so fast today that almost everyone has an idea how the financial stock market works as compared to a few years back when only a handful understood. Nowadays, it is very common to hear people.......

Trading Success - How To Avoid Chasing Stocks
Many short-term players view trading as a form of gambling. Without planning or discipline, they throw money at the market. The occasional big score reinforces this easy money attitude but sets them.......

Where and What Would Jesus Invest In
According to the bible, we already know how Jesus felt about moneychangers in a house of worship but what investments would Jesus possibly deem acceptable and suitable in today's society......

Emotions - The One Thing You Must Know Before Making a Trade
Okay, Youíve entered what you think is a low risk trade, having deduced that this was the perfect time to go long. Your indicators all line up, and CNN reports good 1st quarter results in the sector your trading....... 

Shares Investing Without Brakes
The business of investing in stocks is an inventory 'buying & selling' business. Naturally, the companies that sell stock to the public want you to buy and hold it forever in order to maintain its value. But, if you are buying....... 

Professsional Stock Market Trader Rules
I make sure that the stock is being bought by institutions. This appears as high volume. Since the institutional buyer doesnít want to buy all these shares at once and drive the price too high in one day, they will........

Stock Market Trading Success - 10 Golden Rules
Once you have a reliable set of stock trading rules it is important to keep them in mind. Here is one discipline that can reap rewards. Read these rules before your day starts and also read the rules when your day ends........

The Millionaire Principles Of Stock and Options Trading
In todayís stock and option market, people can have different opinions of future market direction and still profit. The differences lay in the stock picking or options strategy and in the mental attitude and discipline.........

Cyclical Stocks - How To Deal With It
In order to get the most out of your investment experience, it's important to recognize patterns in the performance of certain stocks so that you can get a better feel for how long their occasional fluctuations........

Make Money In Stocks The Fundamental Way
I like to buy stocks that are small or as they are called, small caps. These companies donít have too many outstanding shares and when a solid company is being bought, demand increases for the stock and the share price.........

Which Stock Trading Types Are You
If you want to be stock market player you need to learn some fundamentals. There are different types of stock market players. You could be a day trader and jump in and out of stocks every day trying..........

What's a Good System From a Bad One For Market Timing
There are many Market Timing Systems out there. Which ones should you use ? Which ones should you ignore ? Here are some tips to pick the good systems from the bad ones. You'll also find how to build.......

The Road to a Fortune or to Ruin - Online Investing
Online investing is becoming more and more popular with each passing day, but is this really the way to make your fortune and should you rush to join this online investing crowd?  Investing in individual company stocks......

Protect Your Capital - More About Selling
Simply put, even the best investment in the world will lose it's appeal sooner or later. When that happens, or when another investment looks even more inviting and potentially profitable, a reallocation of capital......

Double Your Money - Einstein's Rule Of 72
Einstein's "RULE of 72" provides us with an easy formula to figure how long it takes to DOUBLE YOUR MONEY! As a rule of thumb, at 10% interest money will double every 7.2 years.   It doesn't matter if the investment........

Investments Should Be Chose Wisely
Most investments carry with them at least some form of risk, and because of this risk many people tend to get nervous when it comes to making the commitment to invest.  Despite the risk, however, there is money......

It Not That Simple To Take Losses From Your Portfolio
Acknowledging that you are indeed wrong is giving you relieve. We all make mistakes, so why make a point out of it? Still, the lessons from investing learn that we keep carrying the burdens with us. And in......

Invest Your Money Not Gamble
A lot of people unknowingly has become gamblers instead of investors. The distinction between the two is not what they do, but rather how they do it. How can you differentiate the two? Here are the basic......

It Is Critical To Have A Goal In Investing
Having a goal is critical to your investing career. Goal gives you directions. It will also set your mind to reach that goal. So, before putting any money into stocks, the first question you should ask is what do.......

Selecting the Right Stuff - Income Investing
When is 3 percent better than 6 percent? Yeah, we all know the answer, but only until the prices of the securities we already own begin to fall. Then, logic and mathematical acumen disappear and we become.......

Taking Some Volatility Out of the Portfolio with Dollar Cost Averaging
Simply put, dollar cost averaging is investing at specific intervals over a specified period of time. Instead of buying at a single share price with a lump sum investment, dollar cost averaging buys when prices........

Is The Breakout Going To Hold - How To Know
How do you know if a breakout is real or not? First off, despite what any of the so called experts will tell you, the fact is that you don't. Okay, now that we have that behind us, we can look at it a bit more.......

Embrace Volatility As It Can Be Your Friend
I like volatility for several reasons. For entry and exit points, volatility increases our potential return. No, I do not advocate day trading. No, I do not recommend buying stock A at $ 30 and selling it at $ 31 just.........

Ways to Trump Your Investing Fears
Often times when people here the word "invest" they become frightened. It is probably one of the most misunderstood words on the planet. As a result, many employees as well as other individuals refuse to invest.......

The Chase For Value Versus Growth
A lot of opinions had been thrown regarding the benefit of value investing versus growth investing. The proponents of each styles of investing insists that their method is superior over the other.  I believe that each has........

Lessons Learned From Man Who Turned a $15,000 Into $3.3 Million
I know a man who turned a $15,000 trading account into $3.3 Million. It was an amazing stroke of luck. He even admits
this.  "MARK, I am no fool. I know I was just plain lucky. I don't have magical system.......

Everyone Wants Money Do You
Let me ask you a very simple question. Do you want money? Of course you do!  Everybody wants money. You might think my next question is even sillier, but I'll ask it anyway. Do you really want money.......

Shares Investment

Invest in Share Articles Categories
Wealth
Saving Your Way to a Fortune Wealth Secrets
Building Financial Wealth - The 16 Mantras
Under Earning - The Secret Barrier To Wealth
Learn
Get the Knowledge Whether Rich or Poor
Home Page : Stocks and Shares Investment ==> Invest in Share

Investment and Stock Strategy  |  Financial and Stock Investing  | Invest in Share  |
Buying and Selling Shares Tips  |  Learning To Invest In Stock  |  Make Money on Stocks and Shares  |
Invest In Stocks and Shares Beginner | Know About Stocks And Shares  |
| Make a Living Trading Stocks  | Working At Home Stock Investing  |
| Site Map 1 |

(c) www.gotothings.com All material on this site is Copyright.
Every effort is made to ensure the content integrity.  Information used on this site is at your own risk.
All product names are trademarks of their respective companies.
The site www.gotothings.com is in no way affiliated with or endorsed by any company listed at this site.
Any unauthorised copying or mirroring is prohibited.