Rogovy says he’s seen this advice appear in many articles that even predate AI. He attributes this to certain similarities between human thought and AI — that both tend to recycle what they’ve read most often.
“To achieve 15% to 25% returns, smart investors take concentrated positions in a handful of individual stocks,” Rogovy said. “Let me be clear, this approach can bring significantly more risk. Fortunately, there are plenty of investment advisors who engage in active investment management and performance-focused investing strategies.”
Still, there are risks in relying too heavily on AI trading strategies. “So many AI models are based on patterns in text and words, but investing is a numbers game,” said Rogovy.
As Asher Rogovy, CIO of Magnifina, noted, “you don’t know if the person behind the username is a smart investor, a lonely widow, a company insider or a bored teenager.”
“Buffett’s BNSF railroad purchase was surprising at the time,” said Asher Rogovy, chief investment officer at Magnifina, LLC in New York City.
“REITs are a great way to gain diversified exposure to real estate,” said Asher Rogovy, chief investing officer at Magnifina, a registered investment adviser with the Securities and Exchange Commission. “Exchange traded REITs also have the benefit of liquidity, whereas individual real estate investments might last decades.”
Asher Rogovy, chief investment officer of the advisory firm Magnifina, recommends starting with index funds.
“They can hold hundreds of stocks. With so many stocks, investors can earn a typical return without worrying about a catastrophic loss from a single bad company,” he said.
Dividend stocks are still stocks, and business prospects can and do change significantly, said Asher Rogovy, chief investment officer of Magnifina in New York City.
“Some companies must cut their dividend in response to economic weakness,” he said. “Also, since dividend payers are stable businesses, they won’t grow as quickly as others.”
“When retiring on investment income alone, it is important to address all the risks,” said Asher Rogovy, chief investment officer of Magnifina, an SEC registered investment advisor firm.
“Diversification helps to avoid unpredictable risks specific to a single company,” said Asher Rogovy, chief investment officer of Magnifina, LLC. “These risks are rare but can ruin a portfolio concentrated into just a few positions.”
