We’ve been discussing
different STYLES for your investments (Value, Blend and Growth). We’ve also described the SIZE of your
investment choices (Large, Mid and Small caps).
WHY?
It is to build a solid
foundation for diversifying your investments.
It certainly is not the only way but it’s nevertheless a good
start. Let me give you a few
examples.
My company stresses
BEHAVIORAL FINANCE. One concept in
behavioral investing is HERDING. People
who like to follow the well- known companies.
A few good examples would be GE, Apple, Facebook, Google and various
others. Please understand I am NOT
implying these are bad investments. I
actually happen to think some of the aforementioned stocks are excellent
choices. The only point I’m trying to make is that far too often, investors
invest in only ONE area, most often it is LARGE CAP GROWTH. I advocate diversifying into many other
areas.
Thus I would say look at
MID CAP BLEND funds. Why not investigate
SMALL CAP VALUE companies? Perhaps one
could even consider LARGE CAP VALUE. There
is quite literally a vast universe of investment opportunities. Let us continue to research many of these
areas so that you will build an investment portfolio to plan for your business
succession. We’ve been discussing
different STYLES for your investments (Value, Blend and Growth). We’ve also described the SIZE of your
investment choices (Large, Mid and Small caps).
WHY?
It is to build a solid
foundation for diversifying your investments.
It certainly is not the only way but it’s nevertheless a good
start. Let me give you a few
examples.
My company stresses
BEHAVIORAL FINANCE. One concept in
behavioral investing is HERDING. People
who like to follow the well- known companies.
A few good examples would be GE, Apple, Facebook, Google and various
others. Please understand I am NOT
implying these are bad investments. I
actually happen to think some of the aforementioned stocks are excellent
choices. The only point I’m trying to make is that far too often, investors
invest in only ONE area, most often it is LARGE CAP GROWTH. I advocate diversifying into many other
areas.
Thus I would say look at
MID CAP BLEND funds. Why not investigate
SMALL CAP VALUE companies? Perhaps one
could even consider LARGE CAP VALUE. There
is quite literally a vast universe of investment opportunities. Let us continue to research many of these
areas so that you will build an investment portfolio to plan for your business
succession.