The CSCO example from the dot com bubble really drives the point home. So many people forget that Cisco was once valued higher than any company in the world and then lost most of that value almost overnite. The concept of diworsification is also worth keeping in mind though, since spreading too thin can dilute your returns to the point where you might as well buy an idex fund.
The CSCO example from the dot com bubble really drives the point home. So many people forget that Cisco was once valued higher than any company in the world and then lost most of that value almost overnite. The concept of diworsification is also worth keeping in mind though, since spreading too thin can dilute your returns to the point where you might as well buy an idex fund.
Exactly! It’s all too common for beginners investors to be on the extreme sides rather than the happy medium.