Comments on: Total International Equity Indexing— The way to a diversified portfolio and better asset potential http://www.invesmint.com/total-international-equity-indexing%e2%80%94-the-way-to-a-diversified-portfolio-and-better-asset-potential/ Financial planning, retirement, 401k, investing blog Thu, 04 Mar 2010 18:15:10 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Jane http://www.invesmint.com/total-international-equity-indexing%e2%80%94-the-way-to-a-diversified-portfolio-and-better-asset-potential/comment-page-1/#comment-88 Jane Tue, 04 Nov 2008 19:43:29 +0000 http://www.invesmint.com/?p=177#comment-88 Thanks for the info. Thanks for the info.

]]> By: David Raddie http://www.invesmint.com/total-international-equity-indexing%e2%80%94-the-way-to-a-diversified-portfolio-and-better-asset-potential/comment-page-1/#comment-55 David Raddie Fri, 24 Oct 2008 22:34:49 +0000 http://www.invesmint.com/?p=177#comment-55 I agree. Diversification among the stocks of many companies reduces unsystematic risk because, of course, it's highly unlikely that every one of the unhappy events listed above will occur in all companies. Diversification is an important and useful principle of investing. To diversify your investments, you simply vary where you put your money. Diversification is a fundamental investment concept that most investors have no trouble understanding. If, for example, an investor owns equal dollar amounts of only two stocks, and one suffers a 50% loss, his or her portfolio has gone down in value by 25%. Diversification can't guarantee a profit or protect against a loss, but it can help you balance risks. Diversification (holding many securities) may eliminate the unsystematic risk from a portfolio. I agree.

Diversification among the stocks of many companies reduces unsystematic risk because, of course, it’s highly unlikely that every one of the unhappy events listed above will occur in all companies.

Diversification is an important and useful principle of investing. To diversify your investments, you simply vary where you put your money. Diversification is a fundamental investment concept that most investors have no trouble understanding. If, for example, an investor owns equal dollar amounts of only two stocks, and one suffers a 50% loss, his or her portfolio has gone down in value by 25%.

Diversification can’t guarantee a profit or protect against a loss, but it can help you balance risks. Diversification (holding many securities) may eliminate the unsystematic risk from a portfolio.

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