O'Reilly logo

Are You a Stock or a Bond?: Identify Your Own Human Capital for a Secure Financial Future, Updated and Revised by Moshe A. Milevsky

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

3. Diversification over Space and Time

“...It is a good idea to allocate most of my 401(k) account to my own company’s stock, since I can keep an eye on things here and the stock price has been doing really well, lately....”

—Myth #3

The famous economist John Maynard Keynes was once quoted as saying that he did not believe in diversifying his investments. He felt that the best investment strategy was to buy a few good stocks, and just hold on to them. In stark contrast, Peter Lynch, the legendary Fidelity Investments guru, is rumored at one point to have owned more than 1,000 different stocks as part of Fidelity’s mutual fund portfolio.

Keynes’s comments aside (how do you find those few good stocks?), by now it is accepted wisdom that diversifying ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required