General Investment Strategy I: Diversification

One of the best investment strategies to achieve your long-term financial goals is to create a diversified portfolio. Owning a diversified portfolio of stocks gives you the highest probability of reaching your long-term financial goals.
One of the easiest ways is to own a portfolio of index funds. Follow a sensible asset allocation using tax-efficient, ultra-low-cost Vanguard funds and then take a few minutes a year to rebalance the portfolio. It’s not exciting but it does allow you to achieve your most important financial objectives with low volatility and a minimal time expenditure. A diversified stock portfolio should serve as the foundation of every serious investment program.

Sven Franssen