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How can I decrease investment concentration risk?

You may be able to decrease concentration risk by diversifying your investments and leveraging the wisdom of the crowd.

  • Diversify your portfolio by making multiple small investments to lessen the risk. Remember that even if recommended, diversification does not assure a profit or provide a guarantee against investment loss

  • Leveraging the wisdom of the crowds will help you choose businesses that have the potential to be successful in the future.