A good way to follow this strategy is to use low-cost index funds or ETFs and follow the model of modern portfolio theory.
By spreading your investments across different sectors and industries, you can cut the impact of any single investment's performance on your overall portfolio. This helps to mitigate unsystematic risk, which is the risk associated with individual companies or sectors. A good way to follow this strategy is to use low-cost index funds or ETFs and follow the model of modern portfolio theory. This provides for a passive long-term portfolio that maximizes return for a given level of risk.