Student Question:
Could you tell us “how to start”, that is how to get enough diversification as soon as possible with say $50K ?
Dr. Scott Brown's Answer:
First of all congratulations on having enough money to have a GREAT start!
Again, I give no personal financial advice. But, in general I teach in the course that investors have to first protect themselves from themselves. This is done by allocating 70% to a core passive strategy. In my opinion the best core passive strategy is the Gone Fishing Portfolio (GFP). Then the 30% leftover can be invested in single stocks.
However, somebody completely starting out may be best off with simulated trading for the first year. During that year the entire allocation would be 100% core passive portfolio such as the GFP.
Could you tell us “how to start”, that is how to get enough diversification as soon as possible with say $50K ?
Dr. Scott Brown's Answer:
First of all congratulations on having enough money to have a GREAT start!
Again, I give no personal financial advice. But, in general I teach in the course that investors have to first protect themselves from themselves. This is done by allocating 70% to a core passive strategy. In my opinion the best core passive strategy is the Gone Fishing Portfolio (GFP). Then the 30% leftover can be invested in single stocks.
However, somebody completely starting out may be best off with simulated trading for the first year. During that year the entire allocation would be 100% core passive portfolio such as the GFP.