EP 166: Is Diversification Dead? Should You Just Own the S&P 500?

Have you heard the notion that investing in the S&P 500 is synonymous with having a financial plan? How about investing in the S&P 500 IS diversifying your portfolio? If either of these thoughts haven’t crossed your feed yet, they may be soon as they’ve gained more and more traction lately given the performance of the index over the past decade or so.

On today’s episode, we’ll discuss both of these concepts in depth and how they can impact wealth building. Perhaps the rules for diversification have changed and a new strategy is prevailing… or not.

   

Topics Discussed:   
  • An analogy that explains the case for diversification.
  • The biggest downside to diversification.
  • What Warren Buffet says about diversification and why he says it.
  • What we can learn from the “Magnificent 7.”
  • The importance of perspective when making investment decisions.
  • What it means to seek “maximum return.”
  • How to determine successful returns.
  • The problems that come with timing the market.

Resources Mentioned:

Tags

diversification, risk assessment, mitigating risk, reducing risk, ER docs and tech, ER doctors, ER docs, emergency doctor, financial planning, financial plan,