/biz/ - Business & Finance

>>1416103
Yea, except you'll never actually make any money that way. Research and logic are much better ways to pick stocks.

>>1117820
That's not what diversification means at all.

Diversification is the act of investing in multiple unrelated fields at the same time. For example, healthcare and finance, or semiconductors and utilities.

It's drinking from two wells instead of one. If one well dries up, you'll still have the other well to drink from.

The downside, of course, is the fact that you have to pull on two buckets instead of one. You'll never be able to pull as fast as you could if just have one big bucket, because half of your strength is pulling on another bucket.

But when the market decides to fuck you up the ass, at the very least you won't have lost everything.

>>946548
I don't know, is losing purchasing power really that important? I freely admit i know nothing about investing but seems like a boogeyman to me. I mean, you're actually earning money you wouldn't otherwise, right?

Though I admit not having access to it is bad, so I'm thinking about throwing everything into savings account now. 1% interest rate is sad but its no risk, i guess.