Quy Tran @tungtran18: "𝟑𝟏% 𝐲𝐭𝐝. 𝐑𝐞𝐭𝐮𝐫𝐧 𝐚𝐧𝐝 𝟏𝟎𝟗%..."

Germany

Edited

𝟑𝟏% 𝐲𝐭𝐝. 𝐑𝐞𝐭𝐮𝐫𝐧 𝐚𝐧𝐝 𝟏𝟎𝟗% 𝟐-𝐲𝐞𝐚𝐫 𝐫𝐞𝐭𝐮𝐫𝐧 - 𝐑𝐢𝐬𝐤 𝐒𝐜𝐨𝐫𝐞 𝟒 Hi everyone, as September marks my portfolio's return reaching a new high for this year, given a difficult month for cryptos, and my risk score has stayed at 4 for the third consecutive month, I want to write some words reinstating my firm belief in following the diversification strategy that I have been practicing in the last three years. First and foremost, the focus of my portfolio is diversification. This is not just a simple strategy of owning a bunch of ETFs that expose you to thousands of stocks in all industries or geography. I do own ETFs, but I also actively buy selected stocks and assets that present an attractive reward-to-risk ratio. I don't own only stock, I own multiple assets from different asset classes. I don't overallocate my funds to cryptos so I did not suffer the excruciating pain many altcoin holders have experienced in the first half of 2025. When it comes to cryptos, there are many ways to bet on it and not risking a lot, for example buying Coinbase and Microstrategy stocks before the halving year when they are around the bottoms, and never the position become too big in your portfolio. Same weighing principles for other crypto holdings, keep it in balance with the rest of the portfolio and there's no need to sell at the exact top. I keep reminding myself this from time to time. I also don't concentrate my portfolio in tech-stocks but I bought shares from undervalued manufacturing companies, based on my working experience in the engineering sector. I am not afraid of Chinese stocks as many hedge fund managers just because of the tension with the US and government crack down. I don't feel too uncomfortable because of allocating 10% of my portfolio to $SLV (iShares Silver Trust) , but rather, I knew $SILVER in early 2025 having one of the best reward-to-risk ratio among all asset, and its effect on portfolio diversification is tremendous since it has lower correlation to stocks or cryptos. Silver price is driven primarily by money debasement, supply constraint and industry demand. I have posted about Silver and reposted a few times, but they did not receive much attention, so as Silver in general. I think there might be a chance as Silver reaches new all-time-high, more retail interest would flood in, causing FOMO and pushing its price much higher beyond many people's imagination. I also changed my portfolio composition from time to time based on economic and monetary environment, but I would always like to be diversified. You would never see my portfolio with full bag of cryptos, or tech stocks. But diversification also has its limit, it would require more attention and effort to keep track of all the companies and projects you own. Overdiversification makes investors spreading his resources too thin, underallocate his funds to the more outperforming asset. For me the sweet spot for a portfolio to diversify is around 20-40 different assets. I have experienced great benefit from diversification, not only to my portfolio return, but also to my emotions. I feel more stable, more calm and at ease even during big market dump. It allows me to make more rational decisions when the market is fearful or euphoric. And that's all I look for in investing, stable return while still enjoying the ride. ----Thank you for reading--- $BTC $SPX500 $GOLD

5 Mentioned

SLV

iShares Silver Trust

SILVER

BTC

Bitcoin

SPX500

GOLD

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