Di-worse-ifcation

Sep 2013 //
Di-worse-ification

Intelligent diversification works.  However, problems can develop when an investor mistakenly assumes that merely adding more investments to a portfolio produces the desired diversification benefits.  Simply put, when additional investments are not appropriate for an investor’s objectives, including them can add risk to a portfolio.  This process has been labeled di-worse-ification by famed investor Peter Lynch.