Diversification means spreading money across different assets so that no single loss destroys the portfolio. Heres how where to buy Reddit do it:
- By Sector Mix healthcare like Pfizer.
- By Region Hold U.S. firms such as Apple, European ones like Volkswagen, and Asian firms like Toyota.
- By Asset Type Combine real estate investment trusts.
- By Company Size Balance large-cap stable firms like Procter & Gamble with small-cap growth firms like Zoom or Shopify.
- By Theme Consider industries like entertainment.
Example diversified portfolio:
- 30% in S&P 500 ETF (large-cap exposure)
- 20% in international ETF (Asia, Europe)
- 20% in healthcare stocks like Moderna or Johnson & Johnson
- 20% in tech giants like Google and Nvidia
- 10% in energy like Chevron or NextEra
Diversification helps reduce volatility and increases chances of steady returns over time. Its one of the most important rules for beginners starting in the stock market.
