Disciple | Husband | Father | Writer | Investor | Here to learn and encourage. Grateful our paths have crossed🙏🏻 https://enroll.ship30for30.com
"As an investor, you should be in the habit of having at least 20 different investments even as you start."
Spread your bets out
We often convince ourselves that one idea is better than the other. Diversification saves us from ourselves.
David suggests not putting more than 5% into any investment with the initial allocation.
Sleep at night factor
One of the reasons we diversify our portfolio is so we can sleep at night. When one position becomes too large, it can become stressful and force us to make emotional decisions.
Make them earn it
When you start with a maximum 5% allocation, you are forcing positions in your portfolio to earn the top spots.
Over time you can determine how comfortable you are with large positions and adjust your portfolio accordingly.
"... if you're worried about where it's going to open tomorrow morning, or what that earnings is going to be like in two months ... then you're probably over-allocated,"
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