Not Diversifying

Enron: 100% company stock → $0. VTI + VXUS + BND. "The only free lunch in investing."

Concentrating assets in one stock or sector is gambling, as Enron employees lost everything in 2001 when their 401(k)s held only company stock. Bitcoin hit $69K in 2021, then dropped to $16K in 2022, a 77% loss. Adding VXUS and BND creates a portfolio recommended by Buffett and Bogle. Diversification is the only free lunch in finance.

View Source

Comments on "Not Diversifying"

Have a take on this ranking?

Comments are how the argument actually happens here. Posting one needs a free account — it takes about a minute.

Create a free account Already have one? Sign in

No comments yet.

The first comment sets the terms of the argument.

Photos (1)

Comments on "Not Diversifying"