Is diversification of investment products and assets important?

In Spain, experts discussed, among other things, the current investment boom in cryptocurrencies and analyzed the first processes for activating investments in new financial assets. The conversation took place as part of the Dozen Talks meeting entitled “How to Build a Current Diversified Portfolio”.

Why is it useful to diversify the investment? What is the reason for the current investment boom? How do I start investing in cryptocurrencies, index funds or startups? What advice is there for a new investor interested in various investment products? These were some of the topics that were discussed.

The meeting was moderated by Eduardo Bolinches, Invertia’s financial analyst, with more than three decades of experience in the stock market. The event included the participation of Augusto Cerisoli, Head of the OTC Desk at Bit2Me; Gerard Bernal, Co-Founder and CEO of Balio; and Roger Piqué, founding partner of Inveready.

Is diversification of investment products and assets important?
Is diversification of investment products and assets important?

The session began by discussing the importance and benefits of diversifying investments. “It is important to diversify the risk,” agreed Cerisoli and Bernal at the beginning of the meeting.

“You need to be patient in the medium and long term and build large portfolios if you want to target certain levels of profitability,” said Inveready founding partner Roger Piqué.

During this first part of the discussion, one of the session’s virtual assistants spoke with the speakers about the potential disadvantage of over-diversification as a factor lowering the potential return on investment. When asked if the profitability is lower in the face of excessive diversification, Bernal started the argument: “The statement is correct, but the problem is that we don’t have a crystal ball to know in advance how much they are investing with the best Return. For example, they give an average result for index funds, but in the long run the average can produce very strong results.

Finally, Bernal decided to diversify as long as we don’t know which the winning horses will be.

With regard to the profile of the main investor, the three speakers agreed to refer to a differentiated profile of the first-time investor. “The answer is always” I want to do something with my money, “said the CEO of Balio.

The moment of cryptocurrencies and investing in startups

Another topic that has been brought up in relation to the news of the past few weeks has been investing in cryptocurrencies. It was Roger Piqué who referred to his “volatility”. and the importance of the existing technology behind these types of assets.

“It is very important that we consider the applications that we can give to blockchain technology,” he added.

Augusto Cerisoli began his shift by claiming that the trust had been broken. Technology moves from people and institutions to code -.

Cerisoli made the comparison between the blockchain and the appearance of the phone to argue the different purposes that technological glitches can be given. “As with all innovation, it is used in the legal and illegal world because it has multiple uses,” he stated from his experience with Bit2Me.

From his position as a founding partner of Inveready, Piqué confirmed the role of startups as investment vehicles due to its close link to the current business cycle.

“A startup investor is not affected by a tweet from Elon Musk,” he said. However, due to his position as an expert in investing in startups, he admitted that he was waiting for the “tokenization of investments in startups”. With that in mind, Bernal reiterated the role cryptocurrencies can play in the secondary market for startups. I think they could speed it up. The internet offers many opportunities that are not always used, ”he added.

Investment as a complement to the pension system

In the final part of the debate, participants looked at the role of investment as a future complement to the current pension system, including alternative pension plans. Given the moderator’s question as to why there is an interest in a particular asset, Cerisoli called for the learning required by investing in cryptocurrencies to “receive the rewards of this technology.”

Based on “continuous training” Balio’s argument was developed as an expert for indexed products, which also pointed out how important it is to have experts in this field during investment support.

The session, which was attended by private investors and journalists from the business press, ended with a question time from the virtual assistants about the webinar, in which they could express their doubts and questions.

Platform accredited by the CNMV

It should be noted that Dozen is a CNMV accredited online investment platform. The company was founded in 2015 by Ramón Saltor and has partners including Inveready, Keyword VC and Sevenzonic.

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