Diversification: When the only 'free lunch' in finance makes you sick

More not always merrier

clock • 3 min read
Rick Eling of Quilter

Rick Eling of Quilter

Many people will have heard the phrase 'diversification is the only free lunch in finance' from the great Harry Markowitz’s seminal paper Portfolio Selection published in The Journal of Finance in 1952.

His insight still powers how we invest today but, while his famous phrase remains correct, we now know that diversification's free lunch can make you sick if you eat too much of it. However, more recent...

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