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dirt2624

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  • dirt2624 commented on Rupert Hargreaves's article 01-18 20:52
    Diversification: An Investor's Best Friend
    Per the SEC's beginners' guide to investing, diversification is defined as: “The practice of spreading money among different investments to...
    View all 3 comments
    dirt2624 01-18 20:52
    • 8 positions gives you 90% of the market basket diversification - 14 positions gives you 97%.

      Wide moats and pristine balance sheets selling at the cheap end of their 10 to 15 year valuation profiles will do just fine with 5 to 6 positions.

      Deep value with riskier balance sheets might require up to 30 positions.

      Either way, watch the progress in each position's quartley financial reports and you should be able to avoid permanent loss of capital.

      It is simple - just not easy - you do the work or you lose.

      Or as Marty Whitman says - diversification is a damn poor substitute for being an intelligent investor!!!

      I think Guru Focus is the wrong place for this article - maybe the free weekly shopper would be a better venue.
  • dirt2624 commented on Rupert Hargreaves's article 01-18 20:45
    Diversification: An Investor's Best Friend
    Per the SEC's beginners' guide to investing, diversification is defined as: “The practice of spreading money among different investments to...
    View all 2 comments
    dirt2624 01-18 20:45
    • 8 positions gives you 90% of the market basket diversification - 14 positions gives you 97%.

      Wide moats and pristine balance sheets selling at the cheap end of their 10 to 15 year valuation profiles will do just fine with 5 to 6 positions.

      Deep value with riskier balance sheets might require up to 30 positions.

      Either way, watch the progress in each position's quartley financial reports and you should be able to avoid permanent loss of capital.

      It is simple - just not easy - you do the work or you lose.

      Or as Marty Whitman says - diversification is a damn poor substitute for being an intelligent investor!!!
  • dirt2624 commented on Benjamin Clark's article 01-17 17:52
    A Valuation of Johnson & Johnson
    Benjamin Graham taught that an intelligent investor must do a thorough fundamental analysis of investment opportunities to determine the intrinsic...
    View all 1 comment
    dirt2624 01-17 17:52
    • I have intrinsic value at $90 to $92 but would prefer to buy at just below $80 so that my returns would be over 12% compounded per annum.
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