The word ‘diversity’ is a unique one. It can
represent many things, depending upon its context. To work in a
diverse workplace is to have all genders and ethnicities
represented. In another example, people strive for diversity
within their leisure activities, while at the same time seeking
consistency (yes, that is strange).
Used to describe your financial affairs,
diversity is equally important, and I’d be happy to share why this
is so. Have you ever met someone who said, “I invest all my funds
in small tech stocks?” I have, though they’re not as vocal about
it these days! The same can be said for those who favor
healthcare, real estate, junk bonds, emerging markets, or their
bedroom mattress! Every segment of the market has short-term and
long-term cycles and fluctuations, and no one is immune to them.
I favor nothing! No segment of the market is
more or less important—they all have a role. I manage assets like
I feed ducks—everyone gets some, but no one gets too much. Handled
mathematically and reviewed regularly, there is, in my opinion, no
better way to approach the issue of long-term growth.
What
Do You Mean By Diversity?