by Grace aka costofcollege
Do you think your investment portfolio is diversified? Morgan Housel at the Motley Fool believes there’s only one way to tell if you’re truly diversified.
You are only diversified if some of your investments are performing worse than others.
Losing money on even a portion of your portfolio is hard for some people to swallow, so they gravitate toward what is performing well at the moment, often at their own expense.
In other words, some people gravitate toward selling low and buying high.
That was one of 16 Rules for Investors to Live By recently published by the WSJ.
Do you agree with these rules? Which ones seem particularly important to you? What rules would you add? Have you been happy with your investment portfolio?
ADDED: If you’re having trouble seeing the WSJ article, try clicking this link to Google and then select the first result.