Tag archives: Diversification

Michael James Is Wrong On Portfolio Concentration

Last update on May 15, 2014.

Does having a less diversified portfolio really hurt your returns?

 

Many people rely on personal finance blogs for their investment education. That's why when a blogger publishes an erroneous article, someone should correct it.

Yesterday, I found one such article that I want to speak about.

The author in this case is a guy named Michael James, who runs a popular blog called 'Michael James on Money'. He claims to be a 'math guy in high-tech', and he doesn't elaborate further than that.

Yesterday, he wrote an article called 'The Cost of Portfolio Concentration', where he argued ...

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Short Course On Investments Episode 2: Diversification and Liquidity

Last update on Aug. 18, 2014.

In the Short Course On Investments, you will learn the basics of investing through simple everyday language. The course covers the same material as The Short Book On Investments.

In Episode 2, I cover 2 important concepts that you should always keep in mind when you assess your investment portfolio.

Note: Apologies about the audio quality - I may redo the video in the future to address this

 

 

Transcript:

Hello, my name is Jin, and I’m the founder of MoneyGeek. Welcome to 2nd episode of the short course on investments.

Today, we’re going to cover Diversification and Liquidity. Let’s ...

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How Modern Portfolio Theory Works

Last update on Feb. 19, 2015.

Risky business: Modern Portfolio Theory aims to reduce risk in a portfolio without sacrificing returns

 

At MoneyGeek, we use a variation of Modern Portfolio Theory (MPT) extensively to construct our portfolios. In this article, I will explain what MPT does.

 

Optimizing A Portfolio Of Two Stocks

Let me explain MPT by way of a hypothetical example. Let's say we have two stocks from corporations ABC and XYZ. Both stocks trade at $10 per share in year 0.

At the end of year 1, ABC goes down by 20%, while XYZ goes up by 50%. In year 2 ...

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5 Common Investing Mistakes (Part 1)

Last update on May 10, 2013.

After you've invested your savings, you'll probably feel a twinge of anxiety. Why wouldn't you? You probably just spent thousands of dollars on something you couldn't see or touch.

I know how you feel, because I've been there myself. I'll make a post about my first experience with investing (and the terrible decisions I made), but not today. 

Today, I want to talk about some of the most common mistakes that investors make. Sometimes, the best offense is a great defense. Avoid these mistakes, and you'll do better than most of your ...

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