Path 3 · Intermediate

Portfolio & Diversification

Individual investments matter less than how they combine. This path covers the mechanics of diversification, the allocation decision, maintenance through rebalancing, and the recurring mistakes that undo otherwise sound plans.

1. What Diversification Is and Why It Works
   The mechanics behind “don’t put all your eggs in one basket”: correlation, concentration risk, and what diversification can and cannot protect against.
   Intermediate 3 min read
2. Asset Allocation: Stock/Bond Mixes by Goals and Time Horizon
   How investors think about dividing portfolios among stocks, bonds, and cash — the role of time horizon, risk capacity, and the trade-offs of common mixes.
   Intermediate 3 min read
3. Rebalancing: What It Is and Common Approaches
   Why portfolios drift from their targets, how rebalancing restores them, calendar versus threshold methods, and the tax and behavioral considerations involved.
   Intermediate 3 min read
4. Diversifying Across Geographies, Sectors, and Asset Classes
   The three dimensions of diversification beyond holding many stocks: international exposure, sector balance, and multi-asset mixes — with home bias and its costs.
   Intermediate 3 min read
5. Common Portfolio Mistakes: Chasing Performance, Timing, and Overconcentration
   The recurring, well-documented errors that cost investors more than fees or fund choice — and the structural defenses investors use against them.
   Intermediate 3 min read