https://www.approvedfp.com.au/reduce-risk-and-volatility/You know diversification lowers volatility by roughly a third, but do you know the exact point where one stock silently sabotages your entire portfolio? The answer involves your brain more than your spreadsheet.
Here's a number that stopped me this week: diversified portfolios can run about 33 percent lower volatility than concentrated ones. So why do so many people still stack their money into one or two familiar stocks? [engaged] Today we're digging into diversification, and why our own brains might be the biggest obstacle to it. Have you ever wondered why you keep buying the same stock everyone at work is talking about? Approved Financial Planners Pty Ltd City: Floreat Address: 7/437 Cambridge St, Website: https://approvedfp.com.au