Making the most out of an investment portfolio

Post date: Jun 17, 2021 7:29:11 PM

For most investors who’ve been around long enough, investing is all about preserving capital in the long term and about never losing money.

For today’s blog, Scott Tominaga of PartnersAdmin LLC reviews some strategies business owners can apply to make the most and protect their portfolios as they go for more investment options. All investment ventures come with risks but being aware of risks is part of maximizing the potential of one’s investment portfolio. Non-correlating assets According to Scott Tominaga, non-correlating assets refer to multiple stock portfolios such as commodities, bonds, real estate stocks, and currencies that often eliminate most unsystematic risks while helping compensate for the given systematic risks. These assets allow for lowered volatility since they react to market changes differently when compared to stocks. In short, non-correlating assets make for more balanced and safer returns.

Diversification Anyone who’s put together a winning portfolio knows how important diversification can be. In fact, Scott Tominaga has always emphasized that a diverse portfolio will often outperform concentrated ones. Individuals can gain a larger number of investments in more than a single asset class. This strategy goes well with non-correlating assets as it aids in regulating unsystematic risk that comes with investing in a single company. Dividends Opting for stocks that pay in dividends is always a great idea, Scott Tominaga points out. Dividends guarantee above-average returns and act as a needed cushion in case markets decline. Many statistics prove that businesses that pay good dividends tend to earn more rapidly. And typically, the more secure they are, the higher the share prices and capital gains.

PartnersAdmin LLC’s Chief Operating Officer Scott Tominaga earned his degree in Business Finance from Arizona State University in 1988. An experienced professional in the hedge fund and financial services industry, he has expertise in middle and back office, accounting, compliance, and administrative functions within financial services firms. More investment tips here.