Diversify Stocks! Greater return for less risk. Rule #4.

These are the ten rules of common sense investing for beginners. It's not enough to own stocks of hundreds of companies. Learn about the "magical" benefits of poorly correlated investments: greater return for less risk!
Chapters:
00:28 What is best strategy to construct a stock portfolio?
01:36 Strategy 1: Pick the best stocks.
02:39 Strategy 2: Dilute the impact of company failures.
03:17 Strategy 3: Maximize return for risk.
04:05 Benefits of low correlation: increases return and decreases volatility (risk)
05:13 Risk-Return Map
08:38 The extraordinary Market Portfolio!
08:51 Which stocks to choose? And, How much of each?
09:55 Company-specific risks can be diversified away
10:05 Owning individual stocks is owning uncompensated risk.
10:54 Modern Portfolio Theory
13:48 How to allocate between stocks and bonds?
16:30 Summary: Key Points