Welcome to GuruFocus Investment Space.

Please Join Us to share your investment ideas with more than 100,000 GuruFocus users.

Join      Log in

dirt2624 Feed

dirt2624's Space » Latest Feeds

2017-01-18

  • 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!!!

2017-01-17

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK