A better diversification strategy to hold a core portfolio

[Shadiq]

You can't invest in everything if it's profitable. In metal investing, real estate investing and crypto investing, you need to gain knowledge and buy and hold. But I don't consider investing in a pharmaceutical company or something like that as an investment, rather it's a business. I don't like to put business and investment in a row. Because in both cases, two types of knowledge and two types of experience are required. In gold, real estate and crypto investing, you have a main source of income and you are investing in an asset, but in a pharmaceutical company or something like that, a person's main source of income. Source of income and investment are not the same, they are two different fields.

[el kaka22]

AI innovation is not something I would love to invest. While wars, weapons, drones, all used in war, the war we have against each other has been going on since first humans, it is not a new thing.

Whereas AI is different, it's a war against the nature, against water, and it will create drought that we can't solve, we are already very low on water whereas we are seeing AI using more water to cool down their centres than we can create, and while many deny climate change, math says otherwise and honestly, we can see how life is changing as we are living.

[Pablo-wood]

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‎What do you think?

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My thoughts though. We can't venture into the medical sector without a  license, it's not like the crypto or real estate world where one just needs to get proper knowledge before they venture,  for drugs and medications one has to be certified to operate and can be arrested if they go without a license.

Except on occasions where they choose to partner with a licenced and trained medical practitioner but we all know how greedy flows in our society, it might turn out to be a horrible experience if they partner happen to be a selfish and self centred fellow.

[Coyster]

This is not a popular idea, at least based on my own knowledge and where i come from. But with the never ending geopolitical tensions and armed conflicts, investing in the defense sector might be an option to look out for. Based on ethical reasons, some people might not like the option, but the truth is that purchasing stocks in defense related companies or similar ETF's could be an option to make profit in the long run.

Would i be doing this? Nope, i don't think so. I am happy with my current blend of investments, of which bitcoin takes the lion share. Though i try to spread my investments every year, slowly reducing my stake in volatile investments by gradually accumulating less volatile investments. That's how i diversify and manage investment risks.

[Johnlomape]

‎Investors should look at the weapons, drones warfare and drug/medication industry first while  crypto currency and AI innovations industries come second as more profitable markets when considering investing or diversification of investment portfolio before even thinking of real estate or other investment options that may include precious metals.
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‎I don't mean to favor one sector over the others, but in order to create a balance when considering diversification of portfolio one may have to think outside the box of already known investment sectors like real estate and instead should allocate a larger portion of their funds to defense and the drug industries considering the endless wars and never ending need for medications, because they simply offer high certainty of revenue and perform consistently in the market, thus leading to stability, more income and protection against economic downturns and inflation.
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‎In a case where an investor considers the highest risk tolerance that offers the highest potential returns with the goal of maximizing long term capital growth, a significant portion of their portfolio should be diversified to the cryptocurrency and AI innovation industry instead.
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‎A great diversification approach to a stable dividend paying investment like the defense and drug industry mixed with AI and crypto currency especially Bitcoin is a perfect blend that ensures an investor holds a core portfolio that would really be profitable in the end.
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‎What do you think?
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Truly your post is inspirational for people that understand the need for diversity of investment. People are putting their investments into real estates, banking, Bitcoin, artificial intelligence, electric cars and many others because they know that in few years to come, most of these industries would have exploded having higher demand in the market. People are investing hugely in them because their is a big gain that is going to hit their pockets.

Crude oil has been known as an important raw material that is essential for both household and mobile uses like for powering cars, generators heavy duty machineries but it is fading away gradually due to the demand for electric cars which is going to dominate our markets in few years coming.

[Die_empty]

‎What do you think?

The pharmaceutical industry has always been profitable because it seems they have the skills to invent new diseases. The news that the COVID-19 virus came from a laboratory is an example. It means that most of the diseases man is suffering are man-made. They might be invented to make poor nations become poorer since they will rely on advanced nations for medical support. Therefore Pharmaceutical companies are viable to invest in.

My search for wealth is not void of empathy and morality. I wouldn't invest in firms that deal on military hardware. They end up causing war to sell their products. Wars cause human suffering and death, and I don't want to profit from them.

Bitcoin is not just an asset or an investment to me. It suits my lifestyle.  I don’t want anyone to know how much I am worth and investing in Bitcoin is perfect for the goal. The simplicity of investing in Bitcoin is also second to known. The process of monitoring the stock market and reading financial reports is just time-consuming.

[Promocodeudo]

The pharmaceutical industry has always been profitable because it seems they have the skills to invent new diseases. The news that the COVID-19 virus came from a laboratory is an example. It means that most of the diseases man is suffering are man-made. They might be invented to make poor nations become poorer since they will rely on advanced nations for medical support. Therefore Pharmaceutical companies are viable to invest in.

My search for wealth is not void of empathy and morality. I wouldn't invest in firms that deal on military hardware. They end up causing war to sell their products. Wars cause human suffering and death, and I don't want to profit from them.

Bitcoin is not just an asset or an investment to me. It suits my lifestyle.  I don’t want anyone to know how much I am worth and investing in Bitcoin is perfect for the goal. The simplicity of investing in Bitcoin is also second to known. The process of monitoring the stock market and reading financial reports is just time-consuming.

Very good point you outlined here, to some persons there's nothing special about Bitcoin and I think it is those people that thinks that the only special thing Bitcoin does is the return or will I say the profit gotten from it but thats not true, although that's also there level of understanding in regards to Bitcoin, to those persons that wants their investment to be hidden without being known by anyone, I think Bitcoin is the answer such individuals has been looking for, Bitcoin is not just alternative to fiat, it has solved money problem to a finish and it is the long awaited investment privacy that all investors has always seek for, what a beautiful investment called Bitcoin, on of the reasons why Bitcoin will continue to gain more adoption is this very point you made.

[Coyster]

Bitcoin is not just an asset or an investment to me. It suits my lifestyle.  I don’t want anyone to know how much I am worth and investing in Bitcoin is perfect for the goal.

I have been hodling bitcoin for a very long time now and i agree with you on this. If you are a long term investor, you do not really need to study the market all that much or do too many analysis. Like me i just accumulate bitcoin and hodl, knowing fully well that bitcoin is definitely profitable in the long run.

The pharmaceutical industry has always been profitable because it seems they have the skills to invent new diseases.

Lol, this cracked me up. But you are not far from the truth. A lot of people have lost faith in the pharma industry, and even in the drugs they produce, some of it with worrying contents and side effects (that could often lead to another ailment).

[Fortify]

‎Investors should look at the weapons, drones warfare and drug/medication industry first while  crypto currency and AI innovations industries come second as more profitable markets when considering investing or diversification of investment portfolio before even thinking of real estate or other investment options that may include precious metals.
‎
‎I don't mean to favor one sector over the others, but in order to create a balance when considering diversification of portfolio one may have to think outside the box of already known investment sectors like real estate and instead should allocate a larger portion of their funds to defense and the drug industries considering the endless wars and never ending need for medications, because they simply offer high certainty of revenue and perform consistently in the market, thus leading to stability, more income and protection against economic downturns and inflation.
‎
‎In a case where an investor considers the highest risk tolerance that offers the highest potential returns with the goal of maximizing long term capital growth, a significant portion of their portfolio should be diversified to the cryptocurrency and AI innovation industry instead.
‎
‎A great diversification approach to a stable dividend paying investment like the defense and drug industry mixed with AI and crypto currency especially Bitcoin is a perfect blend that ensures an investor holds a core portfolio that would really be profitable in the end.
‎
‎What do you think?

Bit weird to focus on military companies as your opening line when talking about how to build up a portfolio. Jumping on the AI bandwagon now, while we seem to be in the midst of a short term peak that might drop back again is also a bit short sighted. If you're talking about a "core portfolio" you should definitely be more diversified than just these two industries, as they are quite hard to gauge and would fall into the more adventurous bucket of any portfolio. Most people probably want to start by growing a very diversified index fund and having that always as the majority of your portfolio, with all the other elements in the remaining 50%~ of allocation, otherwise you run the risk of buying into the wrong things at the wrong time unless you do a lot of advance research.

[Despairo]

Well that's true, diversification is important for people who want to maintain their wealth. When you diversify your wealth in real estates and precious metals, that means your money in that amount wouldn't gone.

I guess people who prefer to not diversify their assets because they're successful on the assets they invested.

Let's say someone buy Bitcoin when the price was $100 and they hold till now, I doubt they will diversify because they will think Bitcoin will make a lot of money in the future.

[Stalker22]

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‎What do you think?

Sadly, but its probably true.

Thats a depressing, but smart, way to think about where to put your money.  These days, the surest bets for growth are businesses that make money off of people suffering and wars.  No space for softhearted investments.  LOL! 

Still, wars dont last forever.  And people come up with new medicines all time.  so those things arent really safe investments either.

[JaredIbrahim]

You're basically saying: bet on humanity's worst habits and its best tech.

Defense & Pharma: Betting on endless war and sickness. Morally gray, but you're right—it's sadly recession-proof. People will always fight and get sick. It's the ultimate "pessimism" portfolio.

Crypto & AI: Betting on a new digital future. It's the optimism and disruption play. High risk, wild volatility, but insane potential upside.

Mixing the two is actually a savage, genius hedge. When the world is chaotic, defense stocks print money. When the world is building, crypto and AI moonshot. You're covered in both doom and boom scenarios.

It's a cold way to look at the world, but from a pure profit standpoint, you're not wrong. Just know what you're really investing in.

[Lida93]

I dont diversify, I focus . . . in Bitcoin

If I did want to diversify I definitely wouldnt want to do so into industry I dont agree with,
The weapons industry
Some food industries which wants to poison us
Some pharmaceutical companies who sell us drugs for food which poisons us

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It's alright to focus on investing your funds into where you have confidence of having a substantial ROI after a length of time. Nevertheless, the foods, pharmaceutical and weaponry industry has shown to be profitable to diversify into considering that it's not mystery about how and what has being driving these respective growths in each of them. Unfortunately the pharmaceutical and foods industry has being captured by some money mongers who risks human lives with substandard meds and foods for profit.

[terrific]

That's a good plan, I want to be a dividend investor as well that simply receives the dividends quarterly or semi annual or annually.
But it's the best plan if the chosen businesses or dividend stocks/REITs are distributing quarterly.
Nothing beats earning passively and those who also knew it might say that it's just a small cash flow.
It might be small but that's the next plan, to increase that passive income so that we won't work forever. 

[Creeper0]

Investment depends on your knowledge or your skill with an asset. You definitely do not want to invest in an asset or will not be able to profit from investing in an asset, in which you do not have enough knowledge or experience to survive in investment. Even people have different needs and different preferences. When you are planning to invest, you must try to invest in those assets in which you have good knowledge and you would like to invest in that asset.

We should not all jump on the same asset, as this may reduce the demand for that asset and the amount of profit may decrease and you may have to face losses. Use your knowledge, experience and skill to invest, not by being attracted to profit.

[Merit.s]

OP, I agree with you. I have always thought of investing in pharmaceutical when I have built my bitcoin stash to a good size. I haven't thought of war as a good investment but from your post I saw big money in that industry.

I prefer a cool investment that no one gets hurt. Bitcoin and pharmaceutical will be good in future.

[justdimin]

‎A great diversification approach to a stable dividend paying investment like the defense and drug industry mixed with AI and crypto currency especially Bitcoin is a perfect blend that ensures an investor holds a core portfolio that would really be profitable in the end.

I would say AI is not going to be the investment but you guys think it will be. I am pretty sure it is a bubble that will eventually burst and being kept up because of investments that big players have. As you know, stock market is always wrong and ends up crashing because how they have no clue how to do what they are doing, they look like they are smart because they make money on normal times like today, but when their stupidity is thrown at their faces like 2008 and afterwards, you can see how little they know.

Diversification is good but over-diversification is too bad for your rate of growth. Because, concentrated portfolio may fetch you better return than over-diversified portfolio. For me, stocks and bitcoin alone more than enough still I do invest in gold and real estate as well. With stocks, I do cover pharma and defence and may be AI as well but my portfolio is not focussed toward AI.