RA21 - A Really Adult Show

#9: Diversification & Avoiding Diworsification


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In this episode of the RA21 podcast, we talk about diversification and how to defeat diworsification. We discuss at length the broad strokes of why most young adults find it incredibly difficult to concentrate efforts - and attack the most overdecorated advice in personal finance - diversifying yourself. We speak in depth on how to best design a portfolio that addresses diversification correctly through time - instead of what everyday pundits refer to as capital.

Timestamp Topics 

0:00:32 1. Diversification - why mutual funds cannot outperform the S&P500

0:19:06 2. How to diversify - the right way
0:32:57 3. When to concentrate
0:46:37 4. Why concentration is superior
1:03:44 5. Why concentration is detrimental
1:21:17 6. The illusion of being smart
1:32:44 7. Emergency fund - Mr. Murphy
1:46:56 8. Diworsification
1:56:35 Q&A
1:56:47 Q&A: How corporations structure their portfolio to retain wealth
2:02:14 Q&A: Why ARK ETF is the 21st Century Cramer & Co
2:05:35 Q&A:  How to find a suitable index fund for risk-averse investors?
2:09:16 Q&A: Should you diversify under current market conditions?
2:12:48 Q&A: Euro/China/India/Japan/Singapore or world index - which will you choose?
2:17:31 Q&A: Are you into commodities?
2:21:33 Q&A: Will diversifying across different types of assets generate more return than holding just a couple of stocks in the long run?
2:29:38 Q&A:  How can an average joe start besides relying on 1 source of income - how to gather that courage and take the 1st step?
2:36:33 Q&A: Passports & citizenship - diversifying with passports?
2:44:56 Conclusion


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We are both on Instagram at @foodsnstonks and @aarongoesglobal.

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RA21 - A Really Adult ShowBy RA21