From Yahoo Finance: 2025-04-12 08:04:00

Suze Orman, a financial expert and author, shared crucial investing advice on her podcast. She emphasized the importance of diversification to reduce risk and maximize returns. The average affluent investor owns four asset classes, proving the effectiveness of diversification. Orman’s cautionary tale of a client losing three homes stresses the need for diversified investments to mitigate risks. Another financial expert, Harry Markowitz, also supports diversification through Modern Portfolio Theory to optimize returns and minimize risk. Understanding your risk tolerance and setting financial goals are essential steps before diversifying your investment portfolio. It’s recommended to spread investments across various asset classes and diversify within each class to better insulate against unnecessary risks.



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