I get many DM's by new investors asking which stocks they should buy without actually understanding the basics of asset allocation.

Your chances of success are much higher if you focus on asset allocation vs trying to find the next $TSLA or #Bitcoin

Let's discuss.

Asset allocation is really just a fancy finance term for the mix of different asset classes (investment types) that you hold in your portfolio.

Some of those asset classes includes

- Stocks
- Bonds
- Cash
- Alternatives (Real estate, Gold, etc)
Your asset allocation can range from ultra-conservative to ultra-aggressive.

You have to consider what's most important to you.

If you're conservative, you won't receive a whole lot of growth.

If you're very aggressive, you'll have to be okay with risk.
The whole point of asset allocation is to provide you with diversification across assets classes so when one investment types suffers, your entire financial plan is not in jeapordy.

The larger your investment portfolio, the more more asset allocation matters.
You should put together an asset allocation that takes into account:

- Your tolerance for risk
- How much risk you can afford to take (how much time you have on your side )
- The amount of growth required to meet your future financial goal(s)
If you're serious about looking for companies to own, you need to figure out how the company fits into your overall asset allocation and investment strategy.
My current experience as investment coach I figured the largest value-add to clients is making sure they have a real financial plan and helping them stick to the investment mix that makes sense for them through ups and downs.

Focus on this in your investing.

I hope this helps.

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More from @fred_babu

21 Feb
Happy Sunday Traders!

We are looking to bounce back after a disappointing trading week last week.

Here is my top 4 stocks to watch this week:

$T 📡

$PFE 💊


$MA 💳

Most noticeable articles:
Brief analysis of $T :
Brief analysis of $PFE :
Read 8 tweets
20 Feb
Dear Investors

"When the business does well, the stock price tends to follow over time"

Warren Buffet refers to the term 'moat' for unique advantages that companies have over competitors

Here is what moats are and why they matter.

A 'moat' is a unique advantage that a company has over it's competitors that allows it to:

- Be more profitable
- Retain more market share (customers, clients, etc)

Companies that can establish and keep a moat tend to do well over time.
The phrase comes from the body of water that medieval castles used to use as defense mechanism to keep invaders away.

In a sense, a moat is something that makes a business almost untouchable.

Here's what a real 'moat' looks like ➡️
Read 10 tweets

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