By vantal ”Don’t put all your eggs in one basket.” It’s the oldest saying in investing, and for good reason. Diversification is the key to managing risk. But building a truly diversified portfolio is more complex than just buying a few different stocks. It requires a deep understanding of how different assets move in relation to one another. This is where our AI shines.In the long run, investment strategy simulator The value will be higher and higher, and there will be a great leap in essence. https://www.legendai.app/
Modern Portfolio Theory at Scale
The concept of diversification is formalized in what’s known as Modern Portfolio Theory (MPT), a framework that earned Harry Markowitz a Nobel Prize. MPT demonstrates that investors can maximize portfolio returns for a given level of risk by carefully selecting a mix of assets.
One of the most powerful features of AI Hedge Fund is the ability to not just get a single opinion on a stock, but to consult a virtual “board of directors” composed of investment legends. This same principle can be extended to portfolio construction, helping you build a more resilient and balanced collection of assets.
Here’s a conceptual guide on how to use the insights from our various AI agents to structure your portfolio.
The Core-Satellite Approach
A popular and effective method for portfolio construction is the “Core-Satellite” strategy.
The Core: This forms the bulk of your portfolio (e.g., 60-80%) and consists of stable, long-term investments that are designed to grow steadily and weather market downturns.
The Satellites: These are smaller positions (e.g., 20-40% of your portfolio) in higher-risk, higher-reward assets that have the potential to generate outsized returns.
You can use our AI legends to populate both parts of this structure.
Building Your “Core” with Value and Quality
For the stable core of your portfolio, you should lean on the AI agents who prioritize safety, quality, and long-term intrinsic value.
The Warren Buffett AI: Use this agent to find high-quality companies with durable competitive advantages (“moats”). These are your “buy and hold for decades” candidates. Think of established giants with strong brands and predictable earnings.
The Benjamin Graham AI: This agent is your safety net. Use it to find deeply undervalued stocks that are trading with a significant “margin of safety.” These investments are designed to protect your principal above all else.
The Peter Lynch AI: While a growth investor, Lynch’s focus on “stalwarts”！large, established companies that can still deliver consistent, moderate growth！makes his AI perfect for finding core holdings that aren’t “boring.”
A portfolio core built on the recommendations of