Why Is Diversification Important In Investing? (Benefits And Advantages)

Harry Markowitz won the Nobel Prize in 1990 for his work in showing mathematically how you can both reduce risk and create better returns by diversifying across regions and assets. Risk is of course measured in volatility, ie. how your assets fluctuate in price. Such a theory was new when it was first released in…

Dividend Investing: The Marginal Rate Of Return/Incremental Return (Incremental Return On Investment)

The marginal rate of return is the most important factor to compound efficiently. In the long run, your pension is more dependent on the marginal rate of return than the original investment. If you are into dividend investing, you really ought to study the marginal rate of return on your investments. We argue that dividend…