What's the only free lunch in investing?

Nobel prize winning economist Harry Markowitz famously said, “Diversification is the only free lunch in investing.

What he meant by this was that diversification (example: owning stocks of many different companies in different industries) can be a good way to effectively reduce risk without reducing potential return over time. At Beanstox, we do this by investing for clients using ETFs. For example, the tech sector (technology stocks) was the top performer in 8 of the past 10 calendar years but came in last in 2022, a reminder that last year’s winners may not be next year’s winners. This highlights why investors should consider investing in other categories of stocks including dividend growth, tech, value and international.

Want Diversification Made Easy? ?

Beanstox Plus and Premium subscribers get personalized and in most cases diversified Portfolios that are designed to include stocks of many companies and industries by investing in ETFs. You can start your personalized Portfolio with a deposit of $20 or more. You can also automate your investments by setting recurring deposits to help your investments grow over time.