Treat your investment portfolio like your fashion closet

Whether it’s closet or wardrobe you have, there would be a bit of this and that in it.

Some trendy stuff and some classic stuff, some traditional and some western pieces, some expensive items and some Etsy stuff.
You’d also have stuff for different seasons or weather conditions. As well as covering for different parts of your body.

Even if you have a stronger affinity for a particular item or type of clothing, it doesn’t mean you won’t buy some of the other things too.

An investment portfolio is quite similar, you should buy some stocks and some bonds, some Nigerian stocks and some international one’s too.
Also, while you might have affinity for one type of asset class, you shouldn’t buy just that one.

Nigerian stocks – Capital growth.
International Stocks – Growth and currency hedge.
Real Estate – Inflation hedge
Treasury Bills – Security

Just as nobody has a closet with only shirts, you shouldn’t have an investment portfolio with only stocks or even worse the stock of one company and the most extreme – only the stock of your employer.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: