What is uber-diversification in investing?
Uber-diversification refers to an investment strategy where an investor holds a very large number of assets, often leading to diminished returns.
Why is it considered a bad strategy?
It's often seen as ineffective because it can dilute potential gains and make it harder to track performance.
How can I avoid uber-diversification?
Focus on a balanced portfolio with a limited number of well-researched investments rather than spreading too thin.
What are the risks of having too many investments?
The main risks include increased management complexity, higher fees, and the potential for lower overall returns.
Can you give an example of a diversified portfolio?
Sure! A diversified portfolio might include a mix of stocks, bonds, and real estate, but typically no more than 20-30 individual assets.
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