Diversification and risk
Do not put all StarBux into one celebrity — spread risk across stories and sectors.
Asset allocation in the real world mixes stocks, bonds, and cash. On StockSt, the practical lesson is simpler: cash (StarBux) plus a mix of celebrity stocks across industries.
Correlation is high when two stars share the same news cycle. Pair different sectors (e.g. sports vs music) so one headline does not sink everything.
Position size matters: a 5–15% sleeve per name (of portfolio value) is a sane practice range for learning.
Takeaways
- Cash is a position — keep some StarBux dry.
- Mix sectors and fame tiers.
- Size bets so one name cannot erase the account.
Lesson topics follow a sequence inspired by classic educational stock-market simulation materials (InvestSmart / StocksQuest archive). All StockSt lesson text is original and written for this celebrity market simulation. StockSt is not affiliated with the University of Georgia, ThinkQuest, or InvestSmart authors.