The Investor's Guide to Active Asset Allocation

1Some Basic Principles of Money Management

Introduction

Diversification

Psychological Barriers to Diversification

The Investor’s Two Biggest Enemies: Inflation and Volatility and How Diversification Can Help

Using Diversification to Reduce the Risk from Owning Individual Companies

Using Diversification to Reduce Risk from Market Fluctuations

Diversification Can Result in Bigger Gains as Well as Smaller Losses!

ETFs and Diversification

The Power of Compounding

Compounding and Interest

Compounding and Dividends

Introduction

A couple of decades ago I was driving from the airport with a client and his Swiss banker. We were going over the incredible performance that we had achieved in a matter of less than six months. He remarked that in order to ...