During our weekly webinar this weekend, we were asked the question, “which of the following is considered a diversified investment?”
And it was right in our wheelhouse and we love to speak about diversification. We love to speak about investing and diversification because it is something that Wall Street talks about ALL the time. And like anything else Wall Street, it is mostly a scam or a way for you to hand over your money to them so they can charge you fees.
Without getting into too much detail (we will get into plenty of detail later), diversification is a scam. It’s a joke. It’s not real and is based off fiction instead of facts. C’mon, are you really telling me that a “sector” of a stock can be the difference between it being a diversified investment or not? Give me a break.
Here we go, our answer to the question “which of the following is considered a diversified investment?” This one is going to be short and sweet because to find out what true diversification is not difficult at all. Like many concepts in investing, you have to look under the hood at the numbers to have a true understanding of what is taking place. Diversification is an excellent example of this.