Want to make creations as awesome as this one?

Transcript

DIVERSIFICATION OF INVESTMENT PORTFOLIOS

DIVESTMENT OF NONCORE ASSETS

This is the process of a company selling off noncore assets or divisions that are not essential to its main operations. Divestment helps the company refocus on its strengths, improve financial performance, and reduce complexity. Proceeds from these sales can pay down debt, invest in core operations, or return value to shareholders.

STRATEGIC RE-ALIGNMENT OF THE ASSET BASE

spreading investments across asset classes, industries, and regions to reduce risk. This minimizes the impact of a single investment's poor performance on the portfolio. A mix of stocks, bonds, real estate, and other assets can lead to more stable returns and protect against significant losses.

The process of reviewing and adjusting a company's assets to align with strategic goals involves evaluating the current portfolio and deciding to retain, enhance, sell, or repurpose assets. For instance, a company might sell underperforming assets, invest in new growth areas, or upgrade existing assets to support strategic initiatives.