Micah Scheinberg has acquired nearly three decades of experience in the securities industry. The managing director of Alex Brown, a division of Raymond James, in Los Angeles, California, Micah Scheinberg helps clients structure their diversified portfolios.
The concept of portfolio diversification hinges on the idiomatic expression “never put all of your eggs into one basket.” Financial advisors often warn investors not to invest all their capital in a single security or market.
Diversification is an investment strategy that combines a variety of investments into one portfolio. This strategy thrives because a blend of investments often brings higher returns. Also, investors are significantly less vulnerable to risks and devastating losses if one of their investments loses value.
Although portfolio diversification is an essential part of investing, it must be practiced with care and preferably under the guidance of a financial advisor. Financial advisors point out the most effective means of diversifying portfolios.
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