Diversified Bullish

Musings About Investing (Not Financial Advice)

Apr 03, 2022

Risk and Reward

A good investment and a bad investment look the same when you buy. What matters is your outlook and the amount of downside risk. Benjamin Graham, famed author of "The Intelligent Investor", states that an investment is either "speculating" or "investing" based on the prospects for the company's profit generating business to grow in the future above where the market currently values it.

Investing in its nature is incurring risk to reap rewards. Index funds keep your risk low and are safe play. But anyone who owned strictly index funds missed the significant upside from riskier securities like Tesla and Apple over the past 5 years. Everyone's financial situation is different and a diversified mix of assets is your best bet. This blog is a good faith perspective on being diversified and bullish on stocks and index funds. Hope you enjoy!