Category: Experienced Investors
I am a CPA Candidate sharing my experience building my portfolio while in my 20s. During this process of sharing information online I hope to increase free financial literacy access for all.
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What is Concentration Risk and How Can You Mitigate it in Your Portfolio?
Concentration risk is a potential pitfall in investment portfolio management, manifesting when a significant portion of your portfolio is tied to a single investment, asset class, or market segment. Concentration risk is not inherently bad however, it is a negative opportunity that is present in your situation. It essentially magnifies your exposure to the risks…
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The Best Investment Strategy is Set It and Forget It: A Guide to Long-Term Growth
Investing can sometimes seem like an activity that requires constant attention and fine-tuning. However, having an automated ‘set it and forget it’ investment strategy offers a compelling counterpoint, advocating for a long-term, hands-off approach. By establishing a well-diversified portfolio aligned with your investment goals and risk tolerance, you can minimize the need for ongoing management.…
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Dividend Irrelevance: The Lack of Impact on Stock Value
Dividend Irrelevance Theory, a fundamental concept in corporate finance, conveys that the dividend policy of a company is inconsequential to its valuation. Pioneered by economists Franco Modigliani and Merton Miller in their 1961 paper, the theory points that the value of a firm is determined by its earnings and the level of risk of its…