How can I decrease investment concentration risk?

Last Updated: Jul 15, 2019 12:34PM CDT

You may be able to decrease concentration risk by diversifying your investments and leveraging the wisdom of the crowd.

  • Diversify your portfolio by making multiple small investments to lessen the risk. Remember that even if recommended, diversification will not reduce every type of risk.

  • Leveraging the wisdom of the crowds will help you choose businesses potentially successful in the future.

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