Portfolio diversification is the strategy of spreading investments across different assets, sectors, industries, and geographical regions to reduce the overall risk of the portfolio. The idea is that by holding a variety of investments, the overall performance of the portfolio will be less dependent on the performance of any single investment, reducing the risk of large losses. Why is Portfolio Diversification Important? 1. Risk Reduction: Diversification...
As a part of my daily work as an equity sales, I have the chance to look at thousands of investors portfolio from various walks of life, ranging from 3 figures to 8 figures. The shocking fact is that majority of them is still losing money despite some having “Years of experience in the market”. Below are some of the things that made me understand much deeper about trading/investing through my work and I hope can provide some valuable insight...
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Well said @Brianjh I totally agree with all the above especially 1, 5, 6 & 8. They resonate with me and my thoughts. I need to save this post
The research is done by the respective broker and I do not endorse any of them. Just sharing here for information and reading pleasure. alphaedgeinvest... $EOG Resources (EOG.US)$
EOG Resources' ability to consistently reinvest capital at increasing rates of return is impressive and indicative of a potential multi-bagger. However, further due diligence is recommended given the promising fundamentals.
EOG Resources, despite liabilities, isn't heavily burdened by debt due to its net cash position. Its 63% EBIT to free cash flow conversion over the past three years indicates capacity to reduce debt when necessary. However, monitoring its balance sheet and future earnings is crucial for financial health.
Money Thrill : Very good overview and diversification