Viceira, Luis M., and Zixuan (Kevin) Wang. "Global Portfolio Diversification for Long-Horizon Investors." Harvard Business School Working Paper, No. 17-085, March 2017. (Revised July 2018.) ...
Invest in at least 25 stocks from various industries or an index fund for quick diversification. Include fixed-income assets like bonds to lower volatility and reduce risk in your portfolio.
While that sentiment certainly captures the essence of the issue, it provides little guidance on the practical implications that diversification plays as part of an investor's portfolio.
The best way to manage your portfolio's risk is through proper diversification. And the basic idea is simple enough: Don't put all of your eggs in one basket. Profit and prosper with the best of ...