"Go big or go home" stock picks might seem enticing, but Scott Tominaga warns they come with more risk than you think

"Go big or go home" stock picks might seem enticing, but Scott Tominaga warns they come with more risk than you think. That's why he suggests market-tracking index funds for retail investors. Read more here: https://scotttominaga.wixsite.com/home/post/scott-tominaga-on-diversification-index-funds-and-etfs | Scott Tominaga

1. Scott Tominaga: Don't Sleep on Index Funds and ETFs

A concentrated stock position, where a significant portion of your portfolio is tied to the
performance of a single company, can amplify risk. For example, if you invest all your funds in
Tesla, you become overly vulnerable to fluctuations in its stock price. Diversifying across
various industries by including multiple stocks can potentially enhance your returns and
provide a cushion against substantial financial losses. By spreading your investments, you can

mitigate risk while aiming for more stable and lucrative outcomes in your portfolio.