Diversification

Diversification

A risk management strategy, diversification is the process of mixing a wide variety of investments within a portfolio. The principle behind this approach is that a portfolio comprising different kinds of assets will, typically, yield higher long-term profits and reduce the risk of any individual security.

Terms

Correlation
Portfolio
Return
Volatility

Mentioned by the Following

Asset Classes

Commodity
Fine Art

Entities

ACIES Asset Management AG
Blankenship Financial Planning
Headwaters Solutions LP
Icahn Enterprises
Ollari Consulting
One River Asset Management
Pan American Silver Corp.
Salient
Tocqueville Bullion Reserve

People

Alan Gula
Doug Eberhardt
Keith Fitz-Gerald
Michael Valdes

Publications

Abnormal Returns
Action Alerts PLUS
Bond Investing For Dummies
Cabot Stock of the Week
Commodities For Dummies
Common Sense on Mutual Funds
ETF 20/20
Emerging Markets For Dummies
Fidelity Investor
Global Asset Allocation
Global Bargain Hunting
Hedge Funds For Dummies
High Finance on a Low Budget
High Yield Bonds
Investing from the Top Down
Investing for Beginners: Starter Guide
Investing in Bonds For Dummies
Investing in Commodities For Dummies
Investing in ETFs For Dummies
Marketimer
Oblivious Investor
Portfolio Construction for Today's Markets
Precious Metals Investing For Dummies
Quantitative Credit Portfolio Management
Shiny Pennies
Sovereign Man: Confidential
Sovereign Man: Explorer
Stansberry’s Big Trade
Tail Risk Hedging
The Ages of the Investor
The Art of Value Investing
The Bauman Letter
The Bible of Compounding Money
The Bogleheads' Guide to Investing
The Complete Guide to Making Environmentally Friendly Investment Decisions
The Four Pillars of Investing
The Handbook of Commodity Investing
The Honest Guide to Stock Trading
The Intelligent Asset Allocator
The Little Book of Commodity Investing
The Prudent Speculator
Wealth of Experience

Strategies

Absolute Return
Hedging
Value Investing

Terms

Individual Stock
Risk Management