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The investment concept that's “100 times more important than any stock pick”

by , 22 September 2017
The investment concept that's “100 times more important than any stock pick”
If it all hits the fan and the market goes downhill, does your investment portfolio have enough protection?

Most people can't give a confident straight answer of “yes”.

And this is a big problem.

But relax, because you can kick this problem to the curb.


By using a concept that is described by Editor at Stansberry & Associate, Dr David Eifrig Jr as, “100 times more important than any stock pick.”

He goes onto say that this concept is, “100 times more important than knowing the next hot country to invest in, or knowing what the housing market is doing... or even whether the economy is booming or busting.”

And every investor must know how to use this principle to protect your investment portfolio!

Let me explain…

The profit-exploding investment brokers refuse to tell you about…
Capable of turning a mere R10,000 into R2,360,220!
You don’t have to be wealthy to profit from this investment.
You don’t need any special experience or skills.
And you don’t want to miss out on this opportunity!

The investment concept every investor needs to know to protect your investment portfolio

Dr David Eifrig Jr is talking about diversification.
I’m a big believer of diversifying investments.
If you can’t be 100% sure of the market, you’re putting yourself and your portfolio at risk to becoming poorer.
The problem is, investors end up taking huge risks and stick big chunks of their portfolios into just one or two investments.
In fact, having a portfolio of just bonds and stocks over the past 20 years hasn’t been effective at all. In a world with constant volatility, this kind of diversification isn’t enough.
This is why diversifying your wealth in multiple classes is the best action to take to protect what you already have, as well as grow your investments.
Let me show you what I mean…

How diversification is the best way to eliminate risk and protect your investment portfolio

A 1977 study by academics Edwin J Elton and Martin J Gruber showed how even a little bit of diversification could cut your risk.
It found that the average standard deviation of a US share over a year was 49.3%. And, what this basically means is that roughly a third of the time, you could expect the average US share to be 50% higher or 50% lower than the point at which you bought it.
It sounds great if you’re up 50%, but not so great if you’re down that much.
But if you bought another share, the standard deviation of the portfolio would fall to 37.4%.
Having ten shares would cut this to 24% and so on. Diversifying across asset classes would cut down the risks of losing even more.
So I’m going to show how to create your own diversified portfolio…
I found a secret that turns property into the laziest, low-risk road to riches
I first started dabbling in the property market when I was just 23. 
Since then, I’ve completed my fair share of successful property deals – deals that bring in hundreds of thousands of rand a year without lifting a finger!
How to create your own diversified portfolio to hedge the South Africa’s ailing economy
There’s no better time to build a quality diversified portfolio, than right now. A portfolio that…  
  • Will offer you stability, growth and income  
  • Will withstand and eliminate volatility and uncertainty locally and abroad.  
  • Consists of shares that have longstanding track-records of growth, survived the biggest financial crashes and been in business for decades.  
  • Will protect your investments through any market condition
For example:

Until next time,
Always remember, knowledge brings you wealth,
P.S. If this portfolio sounds good to you, then check out the latest issue of the South African Investor to discover the exact investments you can make today to protect your investment portfolio with your own diversified recession-proof stock selection.
P.P.S. I’m not the only one who’s just released their top recession-proof stocks. So has my penny stock colleague Francois Joubert, you can find out about them here

The investment concept that's “100 times more important than any stock pick”
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