Make your investments like a scientist and diversify

It can't be said enough, can it? What? I'll let you in! Just give me a moment, please! If you asked Google what a scientist does, this is what you'll get

A scientist is someone who systematically gathers and uses research and evidence, to make hypotheses and test them, to gain and share understanding and knowledge Our definition of a scientist - The Science Council

As you can see, a scientist painstakingly gathers evidence through research and draws conclusions. When he is done he tests them so he can gain understanding as well as knowledge. When it comes to your finances and your investment journey, doing your research can't be said enough. If a scientist does this and understands the importance of actively researching their stance and taking a position based on the revelations, then, what's stopping you from taking an active role in researching an investment portfolio before you dip your feet in there?
Scientists show in their everyday works that understanding a thing, say an organism, is a better way to truly unravel the mystery behind them. So you could unravel the mystery behind your portfolio, regardless of which asset class you want to take on. When you do this, you can understand the inner workings and connections of this portfolio. When you have gathered enough facts, data, and history, and draw your hypothesis, you can now test the waters through diversification.

By constantly, seeking to understand your financial position and how you can move several steps ahead of the times, and the market, and get in at the right time, you will allow yourself to explore, observe, measure, and decide on what's best for your future.

If you are not actively doing your research and just jump right into everything because your friends are investing, you might suffer a lot of losses because you can't always take people's word for it as they could merely be speculating.

You should take the time to plan your investments, analyze the data, take down notes and observations, talk to other people who are quite knowledgeable in the field, and then wrap everything up by making your final decision.

You should also remember that scientist sometimes tests their ideas using experiments which sometimes goes wrong. But the good thing is that getting an experiment wrong the first time does not deter them, they keep tweaking it up until they arrive at the best possible answer.

In your case, you need to apply these methods, and your experimenting field would be to diversify. Diversification will help escape wrong experiments and a not-so-sure observation. You will be able to tweak as you go but keep in mind that to stay safe and insured, diversification will have to be your friend.

More from iska

Your pursuit of financial freedom requires more bullets now than cannonballs

Building confidence and the value of your creativity through a relentless discipline to build wealth

The magic wand of wealth building is self-control

Earning an ROI on luck is possible

Winning the game of wealth building using empirical evidence

A legitimate form of discipline needed to build wealth

Why financial pessimist tend to have more audience than optimist

When people buy the top they are mostly chasing performance

Everything has a price including your desire to reach financial independence

Plan for emergencies for they are an inevitable part of our existence

Striking a balance in your investment portfolio reduces future regrets

Invest in something cared about, and there can't be a loss

The quickest way to have less money is to spend it to show people how much you have

Controlling your time is the biggest dividend money pays

The Surprising Role Luck Plays in Building and Sustaining Wealth


I enjoyed this! Research, analyze, plan, review with experts, dot your i's then invest. Nice one! 👍


Hi, your username is almost identical to mine... Lol.

Yes, I am glad you enjoyed this. And you got the message too.

Thank you for reading.