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.

TELUS, $50.28, is a buy. The Canadian telecom leader (Toronto symbol T; Shares outstanding: 601.0 million; Market cap: $30.4 billion; TSINetwork Rating: Above Average; Dividend yield: 4.6%; www.telus.com) continues to expand its range of services to diversify as well as cross-sell to its existing customers.


Telus sees the diversification of its offerings as a way of protecting and building investor value. In addition to its main businesses, the company owns 65% of Telus International....
Investors in this U.S. gunmaker have seen their shares plummet 70% in the past three years. That’s partly because gun sales tend to increase when owners expect higher regulations, but the pro-gun policies of the Trump administration have dampened those fears.


As well, mass shootings have prompted big retail chains like Walmart to scale back the guns and ammunition they carry in their stores.


In response to those factors, American Outdoor Brands (which changed its name from Smith & Wesson in 2017 to reflect its outdoor products and accessories) plans to spin off its firearms business....
Food delivery is one of the most dynamic businesses around these days. But Domino’s Pizza—a favourite of ours—has long been a leader in getting its pizzas to happy customers. That’s given our subscribers an 896.9% gain since we first recommended the shares in 2006....
Discover the value of investing early by considering RESPs, RRSPs, and TFSAs, all of which can add long-term value for investors
What is risk tolerance in investing? The amount of risk you can or are willing to take in relation to potential returns. Diversification is one way to cut risk, but we have a lot more tips for you
Many investors overlook mid-cap stocks, thinking that a combination of large- and small-cap stocks will provide their portfolios with all the diversification they really need. However, as a group, U.S. mid-cap stocks have often performed better than large caps and are generally less risky than small caps....
Complete our investment risk quiz to test your understanding of the riskiest investments out there—and to discover the ideal risk level for your investing temperament
Building the best conservative ETF portfolio includes being wary of many “new” ETFs. These will raise your risk, but not likely your returns
Great changes may soon come to the market in cannabis stocks.

We first mentioned the cannabis stock boom in the June 12, 2018, Inner Circle, in a p.s. to a frontpage report on Artificial Intelligence (AI) stocks. In it we said,

“AI investments are more common in the U.S....
Investors who want to know how to make good investments need to focus on five strategic components: investment style, compound interest, smart ETF picks, hidden assets, and stocks with a history of value