Any group of friends is bound to demonstrate a fair amount of diversity: there’s the intelligent introvent, the jock, the beautiful popular girl, the bad boy…hmm, that’s sounding a lot like The Breakfast Club. At any rate, diversity of personalities contributes to a vibrant, interesting group.
Investments, too, have what we might call “personalities”–they behave in different ways, and each brings something different to the table. By building up a portfolio composed of many of these different “personalities”, a savvy investor can limit risk and increase reward. But before you can do that, you need to understand the different investment “personalities” you’re likely to encounter. Check out our most recent video, or visit our Investing U site to learn more about how different kinds of investments might be right for you.
