In our article about diversification, we have seen that if we want to invest our money in shares, for example, we should not put all our eggs in one basket by investing all of our savings in shares of the same company. It would be wiser to spread our investment over several shares, preferably of companies from different sectors, regions, or even countries, thereby reducing the risk of incurring substantial losses when the price of one of our shares falls. However, we have also seen that the costs associated with transactions on the stock market make diversification relatively costly.

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To reduce costs, we can look for relatives, friends, neighbors or acquaintances who are willing to join us to invest together. If we put all the money we want to invest in a common pot and we use the content of this pot to invest collectively, we can invest higher amounts, obtain better conditions and reduce costs while being able, at the same time, to acquire a wider range of stocks.

If we are numerous enough and if our common pot contains enough money, we can go a step further and hire an experienced professional who will help us identify those stocks that offer the highest potential for gains. And if our investments generate profits, we can either keep them in the pot and invest them as well, or we can decide to distribute them among us proportionally to the amount that each of us has paid into the pot.