That’s Why We Diversify
“We believe owning a broad universe of stocks is the most effective way to participate in the rewards of ingenuity and innovation, wherever and whenever it takes place.” –Weston Wellington , Vice President, Dimensional Fund Advisors
Human ingenuity and innovation are the driving factors that are responsible for long term investment returns. However, these two factors to not insure prosperity in every case. That’s why we need to diversify.Check out this article by Weston Wellington where he gives some interesting examples of innovation and the need to diversify: What Drives Investment Returns? Start with Ingenuity.