Depends on what you have in mind when you say diversification. Easiest way to get started in other sectors is to google for stock analysis articles. They are written regularly for the major sectors and they will talk about the biggest/most interesting players, where they stand in the industry terms in recent developments, competitive advantages and risks. With that said, dividing a portfolio across sectors isn't nece…
Ask HN: Should one diversify their stock portfolio
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Re: Ask HN: Should one diversify their stock portfolio
#12Just because you come from the tech industry does not mean you know something special about the tech companies, their business prospects, financials and how attractively they are priced.
Re: Ask HN: Should one diversify their stock portfolio
#13As for understanding, follow the financial news and the news related to the top holdings of industry/sector specific ETFs.
Re: Ask HN: Should one diversify their stock portfolio
#14Depends on what you have in mind when you say diversification. Easiest way to get started in other sectors is to google for stock analysis articles. They are written regularly for the major sectors and they will talk about the biggest/most interesting players, where they stand in the industry terms in recent developments, competitive advantages and risks. With that said, dividing a portfolio across sectors isn't nece…
i would not call cryptocurrencies investing. and i would not recommend it to someone who is just starting / as the question suggest.
Besides, the OP is presumably interested in actively learning about the fundamentals of diversification, not merely asking for low-maintenance safe-ish portfolio options (in which case, buying an ETF would suffice). I'm just laying out different options across the entire spectrum. Personally, no one told me about virtually any of these options when I was starting out (presumably because they were similarly making assumptions about my risk tolerance level), but I wish they had. For example, reading about industry sectors is fine and dandy, but there's a subclass of stocks called dividend stocks that aren't a sector per se, but can be an investment strategy of its own. Index funds come up a lot in this type of discussions, but REITs do not, despite being pretty decent options as well. For crypto specifically, what almost no one mentions is that bitcoin is actually one of the more conservative crypto options compared to upstart altcoins. Etc. There's a lot of reading one can do across the board.
I'm very specific that crypto is not for everyone, but neither are things like shorting stocks, even though one might be more inclined to call shorting "real investing", whatever that means.
Re: Ask HN: Should one diversify their stock portfolio
#15Re: Ask HN: Should one diversify their stock portfolio
#16Re: Ask HN: Should one diversify their stock portfolio
#17Just because you come from the tech industry does not mean you know something special about the tech companies, their business prospects, financials and how attractively they are priced.
Another problem with concentrating in the industry in which one works (and even worse - the company for which one works), is that in the event of a downturn, both your job/career and your investments will be hit at the same time. Just when you need your investments the most, they will be worth less than you expected.
Re: Ask HN: Should one diversify their stock portfolio
#18Buy the S&P 500 and save yourself a lot of time trying to pick industries.
Of course a key part is, when do you think you will need the money? 10 years S&P 500, between 5 & 10 .... well its not so easy ...
Re: Ask HN: Should one diversify their stock portfolio
#19Re: Ask HN: Should one diversify their stock portfolio
#20Just because you come from the tech industry does not mean you know something special about the tech companies, their business prospects, financials and how attractively they are priced.