- Check you're not taking too much risk
- Try to beat the market without recklessness
Diversification, famously, is described as the ‘only free lunch’ for investors. Most basically, it’s sensible to keep your eggs in more than one basket, but if you fancy turning a nourishing staple into a really tasty dish, it’s worth adding a dash of something extra.
Post-modern innovations are the cordon bleu of investment management. Our booking for that swanky menu is reserved for a later article in this series. Before then, the latest instalment of our portfolio theory tour looks at some older breakthroughs that have become key ingredients.