Customer Quote by Alex Frey
““It is by owning multiple asset classes - foreign stocks, bonds, TIPS, real estate, commodities, etc. - that we can truly consume the "free lunch" of diversification””
About This Quote
Source Book: Investment Strategies, 2020
Diversification across many asset classes reduces risk and creates stable returns.
In simple terms: Spread investments to lower risk.
Key Takeaway
Invest in varied assets.
Themes
risk management
investment
financial planning
Mood
analytical
pragmatic
Type
financial
educational
When to use this quote
- retirement planning
- wealth building
- market volatility
- portfolio balancing
Key Concepts
portfolio theory
asset allocation
free lunch metaphor
Questions to Reflect On
- How do you balance diversification with seeking high growth?
- What asset class do you currently underweight?
A Different Perspective
Diversification can dilute high returns from standout assets.
![“From an asset-allocation perspective, when we talk about diversification, we're talking about investing in multiple asset classes. There are six that I think are really important and they are US stocks, US Treasury bonds, US Treasure inflation-protected securities [TIPS], foreign developed…” quote by Tony Robbins](https://sms4smile.com/quotes/img-quotes/49f/tony-robbins-232_investing_from-an-asset-allocation-perspective-whe_2422511.jpg)
