Introduction to the Video

Diversification is often called the “one free lunch” in investing, and Nobel Prize-winning economist Harry Markowitz remains its most well-known advocate. In this video, Professor Markowitz shares timeless investment wisdom, explaining why diversification is just as critical today as it was when he first wrote about it in the 1950s.

Markowitz highlights how a balanced approach—mixing stocks and bonds in proportions that match your age, risk tolerance, and long-term needs—can help manage risk and optimise returns. He warns against the common mistake of chasing performance, which often leads to buying at market peaks and selling at lows.

The professor simplifies his advice with a practical example: splitting investments between a savings account and a well-diversified equity fund, then leaving it alone. He also stresses the importance of rebalancing periodically to maintain your original asset allocation, especially as markets fluctuate.

If you’re looking for straightforward, proven investment advice, this video delivers a clear and actionable message: diversify your portfolio, rebalance as needed, and stay focused on the long term.

Disclaimer: This video does not constitute financial advice. We recommend that you speak to a qualified financial planner for advice tailored to your individual circumstances and goals. Financial markets may go up or down, and you are not guaranteed a return on your investment. Past performance is not necessarily a guide to future performance.