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[QUOTE="Oluwasegun purpose, post: 239443, member: 73877"] [B]Therefore, you should select companies not only from different industries, but also companies that are influenced by different economic influences..An example of a diversified portfolio would be stock from aerospace manufacturer food producer and computer producer ..As a result a change in the food industry Will no affect the computer industry... Aside from selecting companies from different industries, you can also mix your portfolio with growth and value investments as well as foreign stocks ...No matter what type of stocks you Will select you should remember to include stock that are not subject to the same market and economic factor ... [/B] [/QUOTE]
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