Reported 3 days ago
Personal finance expert Dave Ramsey warns against investing heavily in single stocks, arguing that such a strategy poses significant risks. In a recent episode of 'The Ramsey Show,' he advised a retiree who had tied up 34% of his net worth in one stock to diversify, stating that while capital gains taxes are a concern, the safety of diversification outweighs the risks of holding individual stocks. Ramsey highlighted historical examples of stock volatility and emphasized that mutual funds, which hold multiple stocks, provide a safer investment option.
Source: YAHOO