#6
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. A single total-market index fund (VTI) holds 4,000+ stocks, outperforming #6 (Not Diversifying) by smoothing risk. Adding VXUS and BND creates a portfolio recommended by Buffett and Bogle. Diversification is the only free lunch in finance.
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