4min chapter

Life Kit: Money cover image

Investing for beginners

Life Kit: Money

CHAPTER

Importance of Balance and Rebalancing in Investment Portfolios

Exploring the significance of maintaining balance in investment portfolios through the analogy of a wobbly tire on an older car. The chapter stresses the importance of periodically readjusting the portfolio by selling high and buying low, following basic investment principles, and avoiding emotional decision-making.

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