The shiny stock comes and goes, but diversification is an investor’s best friend, according to Vanguard Chief Investment Officer Greg Davis. Learn more about the investing advice Greg would give to his younger self.
Diversification, not speculation
Video length: 0:49
Producer: So, how’s it going?
Greg Davis: It’s going well, it’s going well. It’s all fun and games (laugh).
Question (on-screen): What investing advice would you give to your younger self?
Greg Davis: The investing advice I’d give to my younger self would be to understand diversification and the importance of it. The reality is, when I first started investing, the idea was to buy the best stock that you thought had a lot of potential that would generate outsized returns. But the reality is, putting all your chips on one stock is a very dangerous way to invest, and it’s not really investing—it’s speculating. And so diversification is critically, critically important.