Core Sattelite Method And How It Can Increase Your Following

I see the 80/20 method everywhere

Walid AO

--

Photo by Dollar Gill on Unsplash

Oh, You haven’t heard about this method before? This is an investment method, and the name gives it all. The core-satellite investment strategy is an investment strategy in which the portfolio is divided into two parts; the core and the surrounding satellites.

According to Investopedia, the core-satellite investment is

a method of portfolio construction designed to minimize costs, tax liability, and volatility while providing an opportunity to outperform the broad stock market as a whole. The core of the portfolio consists of passive investments that track major market indices, such as the Standard and Poor’s 500 Index (S&P 500). Additional positions, known as satellites, are added to the portfolio in the form of actively managed investments.

What does this mean exactly?

It means that you should divide your portfolio into two parts:

  1. The first and more significant part is managed passively to minimalize costs, risks, and tax liability.
  2. The second part is managed actively to enable your portfolio to outperform the stock market.

This is my favorite investment method. It allows me to invest passively and save with moderate risk while actively participating in particular stocks or sectors to follow trends, political situations, or personal interests.

But wait, How does this apply to writing, you might ask? Easy, the same core principle can be used for your writing on this platform or any other platform — Let me explain.

How does the Core satellite method apply to writing?

I’m pretty sure you find it easy to write on specific topics. I’m sure that you already have a massive following for these topics— people who interact with your writing and content.

You are already in your safe zone. This is your niche. Nothing can go wrong, right?

That is not entirely true. See, the internet and all of its platforms work differently. People only see the things that fit their search criteria and habits.

--

--