Video Blog: Could There Be An Issue If I Have Been Sold A Large Portion Of Only One Product Or Investment?
Attorney Jeffrey P. Coleman describes the two main principles of having a successful investment portfolio and how a single major investment does not fit in with those principles.
We’ve all heard the term from our mothers or grandmothers: don’t put all your eggs in one basket, and the same rule applies to investments. Diversification, that is, spreading your assets among different industries, and asset allocation. spreading your assets among different kinds of investments, are really critical in showing that you have a well-balanced portfolio.
In fact, someone actually won a Nobel Prize for showing and studying that the most important thing in establishing a good return on a portfolio is asset allocation and diversification. Don’t put all your eggs in one basket.