How can I decrease investment concentration risk?

Last Updated: Jul 12, 2019 01:17PM 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 concentration risk. Remember that even if recommended, diversification will not reduce every type of risk.

  • Leveraging the wisdom of the crowd may also help you choose businesses that have the potential to be successful in the future

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