Most people, if asked, would say “no!” you should never put your eggs into one basket.
This is why some people get lackluster results. They have financial accounts with small dabs of money with several stockbrokers, mutual fund companies, and various other vendors of investments. Well, it’s diversified, they say.
And you know what, oftentimes it is not diversified. Why? Because they own the same commonly owned stuff in every account, no one is monitoring the total picture, and usually this portfolio will not be diversified across multiple, well-considered investment asset classes.
One couple came to my investment office asking for a second opinion, as they seemed to make little investment progress. They had many investment accounts, and on closer examination, I found they had one investment in three of their accounts … and a not-very-robust investment at that! They had de-worsification, not diversification.
I do not recommend a portfolio concentrated in one asset, to be sure, but many people could benefit from consolidating their holdings into one well-considered, intentionally developed portfolio.
If you’re a Rockefeller, I can understand why you might need multiple custodians of your vast wealth. However, most people would do well to work with a trusted adviser (who provides a safe place to hold their investment assets) and build a diversified portfolio that meets their long-term goals and plans.
Mark Twain (and later Andrew Carnegie) said, “Put all your eggs in one basket, then watch that basket.”
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What is proper allocation of assets? In my book The Eight Points of Financial Confidence I write about The Three-Portfolio Approach and its practical application for investors based on their own unique needs.