diversification

What is diversification?


Diversification involves the planned distribution of investments across various securities to minimize the risk exposure to a specific industry or geographic segment. However, the risk of over-diversification exists, in which an investor can at best expect to mirror the market returns, minus any brokerage fees or management expenses.

Learning how to spot the top blue-chip companies, dividend-paying stocks, and ETFs will help you choose the best way to invest $100K
Some activist investors have a spotty record when it comes to boosting shareholder value. It’s why we independently assess all companies—including those targeted by activists—before recommending them to our readers. In the case of Crown Castle and eBay, we feel the participation of prominent activists will continue to pay off for investors.


CROWN CASTLE INTERNATIONAL CORP....
A: The Vanguard Value ETF, $106.79, symbol VTV on New York (Units outstanding: 475.3 million; Market cap: $51.1 billion; www.vanguard.com) focuses on large-cap value stocks, using the following ratios to identify value: book value to price, forward earnings (estimates) to price, historic earnings to price, dividend to price, and sales to price....
Here are three things to avoid when building your ETF portfolio
All of the major global stock markets are down in the wake of COVID-19’s spread. But we think the worst is over for many stocks, and one way to profit, while at the same time cutting your risk, is to invest in ETFs.


Here’s a look at four international funds that we believe are well-suited for your new buying....
Before you buy an investment that is not yet making money, it’s best to look at it from a “first principals” or “financial physics” standpoint. You can start by asking yourself some simple questions, such as:

“Where’s my profit coming from?”

“What’s special about this investment that makes it capable of profiting from this opportunity?”

“How long will it take for profits to start flowing?”

When you go back and analyze investments that lost money for you, you’ll often find that you failed to ask these questions....
Blue chip stock investing can be easier if you use the pointers we share in this article
Over the past five years, our Wall Street Stock Forecaster recommendation Conagra Brands has provided an example of how hidden assets can create low-risk opportunities for high investor profits. The company has transformed itself from a lethargic conglomerate with high costs and unfocused brands into a market leader with high profit margins and timely products that appeal to consumers.

We suspect the streamlined Conagra has a high likelihood of prospering even more for its shareholders.

I asked our Successful Investor research department to draw up this Inner Circle Spotlight report on the stock....
A: Northland Power Inc., $36.31, symbol NPI on Toronto (Shares outstanding: 200.6 million; Market cap: $7.4 billion; www.northlandpower.ca), develops, builds, owns, and operates natural gas-fired power plants and wind farms....
The investment business is riddled with conflicts of interest. These conflicts have a way of tainting investment predictions so that they agree with and support sales pitches. Your best defense against this arrangement is to maintain a healthy sense of skepticism.

You should feel free to examine and question the basis for a prediction....