Tuesday, April 15, 2014

The Investing Diet: Six Tips For A Healthier Portfolio

For many people, whenever investing comes up, their eyes gloss over. Either they can't relate to the topic, feel insecure or are bored to tears.

On the other hand, food is a much more fun topic that people know a lot more about. Fortunately, food and investing have a surprising amount of similarities. If you know all about what a proper diet should contain, then you are a long ways toward understanding what your investment portfolio should look like as many of the guidelines are the same. Indeed, the comparisons with food can help you better comprehend and remember the key principles of investing. Let's take a look at the more important examples:

Top Warren Buffett Companies To Invest In Right Now

A broad range of ingredients keep you portfolio healthy. As researchers now know, a natural mixture of "old fashioned" meals that our grandmothers made often delivered the wide-ranging diet of vegetables, carbohydrates and proteins that are most beneficial to our health. The same goes with prudent investing in a broad mixture of styles and asset classes, including stocks, bonds, REITS and commodities. This combination will reduce volatility over your lifetime while allowing you to capture the growth that eventually comes from each asset class.

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