How and Why to Diversify Your Portfolio
Alex Michalka, PhD and Fang Rui, CFA
Many investors think they have a well-diversified portfolio when, in reality, they don’t. In The Elements of Investing, Burton Malkiel (Wealthfront’s Chief Investment Officer) and Charley Ellis (noted investor, author, and member of our investment advisory board) outline the three dimensions of diversification you need to improve your chances of long-term investing success.
The three ways you can (and should) diversify your portfolio are:
Across assets
Across asset classes
Across time
Let’s take a closer look at how to apply this to your portfolio.
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