"Fish by the net, not by the rod."
Yesterday, I had the great privilege of joining in the Dimensional Fund Advisors Investing summer series where we are learning about some of the basics of portfolio construction. One analogy shared by Apollo Lupescu stood out to me.
When watching a single fish in the water, it can be very difficult to predict what direction it will go. Up. Down. Left. Right. Who knows.
However, when watching a school of fish, it is much easier to predict what direction they will go.
Likewise, when constructing a portfolio, a single stock can be very unreliable and volatile in it's movement. A sector, on the other hand, can be much more predictable and therefore more useful in constructing an efficient portfolio.
So excited to see what else we will learn in the coming weeks!
Xoogler | ex-JP Morgan | Founder | LGBT Leader
3wPeeps like you made this one great Rashida Sykes Tori Deems