This is a Q&A session about personal finance and financial freedom for freelancers and solopreneurs I recorded. I got a question from Patricia Magno from Philippines.
“What exactly is a diversified portfolio and how can one be built?”
Watch the video for my reply to her. Enjoy!
Table of Contents
Here is the full text of the video:
And today I have a question from Patricia Magno from the Philippines and she is asking this.
What exactly is a diversified portfolio and how can one be built?
So a diversified portfolio means that you invest in a few different assets. So these can be as example, a real estate investment and stock portfolio investment and a Bitcoin investment and another one may be in an Airbnb apartment but all of them are not correlated.
So if one falls, one drops then the other one not necessarily are dropping.
Diversification can also be around geographical regions. So let’s say you’re investing in real estate and you have one investment in the US or a few investments in the US then maybe the rest of them would be in other regions around the world. So if something happens the US economy and things drop there you’re mitigating the risk and not all of your investment will drop.
This was a question for the Q&A session. You’re most invited to add your comments right there with your own question and I’ll feature you in the next video.
Thank you very much for joining.