The Logic Behind Your Stock Holdings | AWM Insights #145

Diversification is a key pillar of financial success. 

Owning as many companies as you possibly can position your portfolio to pick up returns from generational performers, and increases your odds of not missing out on these best-in-class companies.

This concept makes its way into Global Markets as well. Maintaining exposure to different economies and regions with different industries increases your odds of success, and potentially can smooth out yearly returns.

The old adage of not putting all your eggs in one basket holds true here and usually leads to you having more eggs at the end of the day. 

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

0:00 Intro1:35 What do we look for while conducting research?3:33 What is Global Market Capitalization and why do we use it as a starting point? 4:30 Diversification and why we still invest internationally during times of unrest.5:58 Why do we use confidence in outcomes over any single arbitrary figure? 6:45 Why are we slightly overweight Domestic Companies and have a home bias? 7:56 What do active managers think about their funds and how do they invest their own money?9:31 Pros of Passive investing over Active management.11:09 General Structure of our implementation.12:31 Text us