Do you diversify your investments?

My investments are scattered over about 80 directions. The stocks are down now, but the only ones losing money are the ones selling, with the market down, I’m buying.

I’m diversified, mostly through Vanguard Mutual Funds. I tried investing some money (less that 10% of our assets) in the tech boom, and lost my shirt. I can’t be bothered to research and follow things enough to invest like that, hence the mutual funds. Let someone else worry about it. Not to mention, pulling money out of investments in advance of the time you’ll need it for college or retirement.

As for people who don’t know the standard wisdom, it’s hard to understand why. The Motley Fool and every other advisor says the same thing: diversification and low fees. Hold to the course through thick and thin. Don’t time the market. You’ll always lose. Put a little in every month, and you minimize your losses and maximize your gains.

But, like this place, where people ask questions that could easily be googled or wikied, I guess a lot of people don’t know how to see what’s right in front of them. Do we blame them for their ignorance? That seems uncharitable at least, if not unfair. Not everyone has access to a decent education. I don’t think feeling sorry is the solution. Education is.

I am extremely conservative, being now retired. I have about 35% of my resources in some dividend-paying large cap common stocks (with a broker I’ve used for 30 years), a large chunk in
Vanguard (very low fees, tax-free for residents of NY, free advice) and some in their NY Money Market. I took a hit, but the income flow did not slow down. The stocks and bonds see-sawed…one up and the other down. Both are creeping back now.

This December, I sold a few stocks in order to get a capital loss; with the remaining money, my broker bought Pfizer because of drop in price, low p/e and good dividends.

Mutual funds rock! Especially when purchased in September 2008.

If I had two nickles to rub together, I’d put them in separate piggy banks. As it is, my ‘investments’ consist of a duplex home that is completely paid for.

Mizuki, not all mutual funds are created equal. Just don’t throw a dart at the list; you can get into serious trouble.

I always like to diversify the risk.I invest in Stocks and forex- through this broker, and have a couple of government bonds and securities.
You have a point snoopy.However, the loss can be as much even while the investments are diversified.
With scams such as the Madoff and the Satyam, its also often that people invest their emotions in them.
Likewise, its best to stick to the plan/profit targets we have set and not get overly greedy.

@steven Thanks for posting…..I was not familiar w/ Satyam. In my search for more info, among other things, I found this little gem:

“Here’s an irony: the word Satyam means “truth” in Sanskrit”, from this link