It's over. The party, that is. Your investing gig.
You just didn't do all that well, and now the company wants you to move on. They're going to run your portfolio off until it's turned fully into cash and/ or bankruptcies. You had $100 million in assets under management there. Luckily for the firm, $80 million was in stocks and bonds that were reasonably, easily sellable. So they put in limit orders and slowly ran them off, turning the proceeds into cash. Then there was $20 million in a few real estate investment. They put those apartment buildings up for sale. And then there were 25 venture capital investments that would sit likely for years until they were fully run off, i.e. sold or bankrupted and then gone.
All of these images run through your head as you hear the "Almost there!" tone in your new gig as an Uber driver. You hope this one's a big tipper.
Related or Semi-related Video
![Finance: What is a Portfolio?](https://media1.shmoop.com/video/thumbnails/COURSE.FINANCE.970_770x433.jpg)
Finance: What is a Portfolio?7 Views
Finance allah shmoop What is a portfolio Well this is
an artist portfolio The clay ashtrays they did in preschool
for mom They're sketches of birds and whatever else they
could see out of their bedroom window and this hot
mess all part of their body of work All right
Moving on All right Now here's An investor's portfolio four
hundred shares a coke one hundred grand worth of corporate
bonds from comcast shell and mickey d's Two hundred fifty
shares of whatever dot com and a bunch of other
names in here Well the whole thing comprises the portfolio
of investments that mr and mrs jones air making to
you know hopefully be able to retire on what else
is in here while they're home It's probably worth eight
hundred grand Now that shoebox in palo alto subtract there
three hundred grand in mortgage and five hundred k is
thie equity value They have now in their homes Right
What else Here's a thousand shares of the awesome yield
mutual fund in twelve hundred chairs have show me the
money index fund added all up that's their investment portfolio
that's everything they own or have as invested in assets
So it's a portfolio a broad based one and a
more narrow based portfolio might be just a given mutual
or index fund with like a focus on investing or
just a collection of a dozen stocks they owned in
a brokerage account like this one Why so many eggs
or investments Well because diversity is a good thing when
it comes to investments usually anyway unless you're zuk r
bezos or larry sergei if you found it facebook or
amazon or google well and the world looks a little
bit different from fifty thousand feet up in the air
in your private jet But for normal people like us
you know who don't know much about investing in internet
stocks Well then a diverse portfolio spreads risk and volatility
And if you're careful about not spending too many of
your beans well you two can go off into the
sunset Living a nice retirement playing with your own yacht 00:01:58.049 --> [endTime] for his rubber duckie
Up Next
What does it mean to rebalance an account, and will we need a yoga mat? Hit play to find out.
Modern Portfolio Theory claims there's a smart way to invest. If it's not "put all your money under your mattress," we might be doing it wrong...