/biz/ - Business & Finance

>>937169
>I did that?
>Yes I did.
>Blame the white russians.

>>937150
Diversification cannot mitigate all risk and just leave upside potential. Such a thing isn't possible, otherwise everyone would just buy the s&p driving it into bubble territory. Indexing should have died in 2000 with the bursting of the nasdaq bubble due to this very thinking.

>>937185
>These aren't 'theories' bud, a properly designed portfolio is mathematically favored towards success where as throwing all your money on one stock is pure speculation.

Modern portfolio theory is a theory...you're buying the weights assigned by s&p. pic related.