Bitcoin & money learning · Retrospective
Count underlying exposures, not fund names
Inspect what different labels actually contain.
Source foundation
Diversification considers exposure across investments, including overlapping fund holdings. Investor.gov: asset allocation.
A worked example
A fictional portfolio puts 50 percent in Fund A and 50 percent in Fund B. Each fund holds 40 percent in the same company. The combined company exposure is 0.5 times 0.4 plus 0.5 times 0.4, or 40 percent. Two fund names did not halve that exposure.
Original hypothetical example. Amounts, people, events, and scenarios above are invented for learning; they are not historical observations or forecasts.
What to take from it
Product count can be a poor proxy for diversification.
Try it on paper
Recalculate when the second fund holds only 10 percent in the company.
Keep the assumptions beside your answer. Check the result before applying the idea to a different situation.
Reading and limits
The linked source supports the foundation statement. The worked example and exercise are NAKAMOTO's educational analysis. This note does not establish current prices, product terms, investment suitability, or wallet compatibility.
Source reviewed 13 September 2026. For operational decisions, consult the current official documentation and the details of your own circumstances.