Rule #4: Diversify stocks! | Investing for beginners

These are the ten rules of common sense investing for beginners. It's not enough to own stocks of hundreds of companies. Learn about the "magical" benefits of poorly correlated investments. Many call this important concept "asset allocation".
Learn more from books I recommend at my Amazon Influencer page:

▼The Ten Rules of Common Sense Investing is a series to teach investing for beginners:

These are also endearingly called the Boglehead Investment Philosophy. I call them the Ten Rules of Common Sense Investing as a nod to my favorite book by John C. Bogle.

▼Other helpful playlists:  

▼Articles and Courses:

[FinancingLife]

These guiding principles of investing for beginners are also called the
Boglehead Investment Philosophy, named endearingly after John C. Bogle
the champion of common sense investing.

[eriklvandijk]

My compliments. Great way of explaining something difficult in an easy way.

As a former scientist turned practitioner (advising pension plans now on their Emerging Markets investments and Asset Allocation) I know that it is not just about rocket science. It is also about communication so as to ensure that people will avoid the biggest mistakes.

Correlation, diversification and risk management never got the attention they deserve.

Keep up the good work!

[krillansavillan]

This was truly amazing, I never understood the poor correlation benefit of diversification, only the protection from a company's dissolution or poor performance.

[FinancingLife]

@eriklvandijk A belated thank you for this comment. I had fun making these videos. And you are right, it doesn't have to be complicated if you just do a few things right and avoid the common mistakes. Goodness, those words sound an awful lot like my mentor John C. Bogle. It appears that you are actively educating the public as well. Thank you for that!

[musheopeaus]

What about the competitions risk they may corner the market and your left with next to nothing . Plus we have just learnt in uk bonds are not as safe as we thought

[loodLust]

I didn't know RE's Umbrella Corporation use to sell umbrellas.

[jellebosmans]

Hello, i have a question, what is the average COMPOUNDED GAIN you can expect from a stock market over the long term? With this i mean how much money can i get within 50 years for an example if I extract all fees, taxes and inflation, is this 4% 8 %...? Thanks for ur reaction?