See this image/chart posted on Twitter by Neil Borate of LiveMint. They call it the Asset Allocation Quilt.
What I am taking out of here?
No permanent winners in investing except Asset Allocation and Rebalancing.
You can focus on picking the winning investments (easier said than done).
Or, you can focus on allocating the right amount (position sizing) and to ensure that you rebalance, periodically.
That’s how you get the most bang for the buck.
Key takeaways:
Diversify your portfolio using asset allocation
Rebalance your portfolio periodically.
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What are you takeaways from this asset allocation quilt? Do share.
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