When I started investing, I knew nothing. So I did what most people do: I invested in EVERYTHING to not miss anything.
Bitcoin. Ethereum. Gold. Silver. Santander shares. Real estate crowfunding. Five different index funds.
I thought I was "diversified." What I really was: confused.
The beginning: fear and lack of knowledge
I remember why I invested in Bitcoin: because it was the most famous. Stories of people getting rich. I thought it was the easiest way to make money.
Then, afraid of putting all eggs in one basket, I also invested in Ethereum.
The reality? Both were pure noise. Volatility without meaning. Gains that felt magical, losses that felt like the end of the world.
I spent time with crypto. But it never convinced me. The more information I got, the clearer it became: I didn't want to take that risk.
My conclusion on crypto now is clear: it's not the base of a portfolio. If someone insists on investing in Bitcoin, maximum 10%. And differentiate Bitcoin from altcoins/memecoins, which are pure gambling.
The path: more options, more confusion
Then I researched more. Gold, silver, individual stocks (Santander), index funds.
I discovered I could invest in MSCI World, S&P 500, Emerging Markets, Europe, Small Cap.
My reaction? "I'll invest in all of them to be safe."
So I ended up investing in 5 different index funds. I thought that protected me. Really, it just complicated things unnecessarily.
I also bought gold and silver. And Santander shares.
Each investment "made sense" in my head. Each was an additional "protection."
What I didn't understand was that I was over-investing.
The truth about diversification
Here's what matters:
A single MSCI World is already extremely diversified.
You're buying exposure to approximately 1,300-1,400 companies from developed countries. From 23 countries. From all sectors.
That's not fake diversification. That's REAL diversification.
You don't need 5 index funds to be diversified. You don't need 8 funds, 15 ETFs, and 20 individual stocks.
You need to understand that more options = more complexity = no real benefit.
My evolution: from complicated to simple
Today, although I still hold some original investments, I'm betting simply on MSCI World.
Why? Because:
- It's global. I don't depend on one economy.
- It's simple. One line in my portfolio.
- It's diversified. 1,300+ companies automatically.
- It works. 15% historical return.
Now, even though Santander gives me 20% (better than the 15% of index funds), I don't depend on one company.
One company can have ups and downs. A fund with 1,300 companies doesn't.
The three options you really need
And here's the truth nobody tells you:
You don't need to decide between 50 options. You need to choose between 3.
Option 1 — Very simple
- 90% MSCI World
- 10% Bitcoin
(If you want crypto exposure but without too much risk)
Option 2 — Somewhat diversified
- 80% MSCI World
- 10% Emerging Markets
- 10% Bitcoin
(If you want a bit more risk/reward)
Option 3 — Without crypto
- 100% MSCI World
(If you prefer total simplicity)
That's it. Choose one. Invest automatically every month. Forget about it.
End of story. You need nothing else.
The Santander paradox
Here's something interesting: my Santander investment gives me 20%. MSCI World gives me 15%.
So why not everything in Santander?
Because that's luck. One company can have a good year. Or a bad year. Or go bankrupt.
MSCI World doesn't go bankrupt because it's 1,300 companies. If one falls, 1,299 keep going.
See the difference? One is a bet. The other is an investment.
My mistakes (so you don't make them)
My journey taught me:
Crypto is noise if you don't know what it is. Bitcoin maximum 10%. Altcoins, don't even consider it.
More funds ≠ more diversification. MSCI World is already enough.
Gold and silver are "protection" you don't need. MSCI World already diversifies by sectors.
Individual stocks are bets. Santander can be good today and bad tomorrow.
Real estate crowdfunding is complicated. I don't recommend it if you're just starting.
The simple conclusion
Real diversification isn't having 15 different things.
It's having just enough: a global fund like MSCI World that already includes everything you need.
If you want Bitcoin, maximum 10%. If not, 100% MSCI World.
That's it.
You don't need 8 funds. You don't need 20 stocks. You don't need gold or silver or crowdfunding.
You just need one fund that gives you global exposure, monthly automation, and patience.
Everything else is noise that distracts you from what matters: investing consistently, year after year, without complications.
That's what works. Everything else is just... more work for the same result.