We want to own companies with straightforward, understandable business models that are sustainable against competition and change, and that hold up well
in different economic conditions.
Since different asset classes outperform and underperform in different situations and
under different economic conditions, by combining asset classes, this portfolio aims to provide both growth as well as stability.
I have a feeling that out of all the stocks in my portfolio, Visa will be one of them that will outperform in
different economic conditions.
Diversification is about buying a basket of securities that tend to do well (or poorly) at different times and under
different economic conditions.
Since different asset classes out - perform and underperform in different situations and under
different economic conditions, by combining asset classes, this portfolio aims to provide both growth as well as stability.
Different economic conditions can impact various parts of the yield curve differently.