Comments on: The Myth of Diversification http://www.theintelligentinvestor.com/myth-of-diversification/ How to Make Money and Build Wealth Fri, 15 Apr 2011 16:15:09 +0000 hourly 1 http://wordpress.org/?v=3.0 By: James http://www.theintelligentinvestor.com/myth-of-diversification/#comment-507 James Fri, 13 Aug 2010 19:18:57 +0000 http://www.theintelligentinvestor.com/?p=1104#comment-507 Johannes, Thanks for thoughtful comment. I agree with you, in the majority of cases, as a first step it's important to make sure you don't lose your whole basket. As Ben Graham would classify, the investor that does not have the stomach, time, energy should be a "defensive investor" and not veer far from conservatism. Johannes,

Thanks for thoughtful comment. I agree with you, in the majority of cases, as a first step it’s important to make sure you don’t lose your whole basket. As Ben Graham would classify, the investor that does not have the stomach, time, energy should be a “defensive investor” and not veer far from conservatism.

]]> By: Johannes http://www.theintelligentinvestor.com/myth-of-diversification/#comment-505 Johannes Fri, 13 Aug 2010 17:56:10 +0000 http://www.theintelligentinvestor.com/?p=1104#comment-505 Diversification is not the way most investors become extremely wealthy, but it's definitely one of the top ways that investors avoid losing everything, which is, IMHO, the key point of the strategy. Measured growth is better than loss. We as investors can study the market, companies and stocks and decide that there are great buys out there, but the reality is that stocks are volatile and unpredictable. Interesting quote from Mark Twain, but he was no stock guru or investment expert. Peter Lynch, on the other hand, has detailed how intelligent portfolio diversification is a winning strategy for long term growth. Short to mid-term riches, though, is a different story and one that the average investor probably couldn't relate to and wouldn't have the time/energy/stomach to handle. Diversification is not the way most investors become extremely wealthy, but it’s definitely one of the top ways that investors avoid losing everything, which is, IMHO, the key point of the strategy. Measured growth is better than loss. We as investors can study the market, companies and stocks and decide that there are great buys out there, but the reality is that stocks are volatile and unpredictable.

Interesting quote from Mark Twain, but he was no stock guru or investment expert. Peter Lynch, on the other hand, has detailed how intelligent portfolio diversification is a winning strategy for long term growth. Short to mid-term riches, though, is a different story and one that the average investor probably couldn’t relate to and wouldn’t have the time/energy/stomach to handle.

]]> By: Ty http://www.theintelligentinvestor.com/myth-of-diversification/#comment-364 Ty Tue, 25 May 2010 02:14:21 +0000 http://www.theintelligentinvestor.com/?p=1104#comment-364 hmm.. very interesting, James. Thanks for writing it. I'll think this over more and possibly get back to you with some questions. hmm.. very interesting, James. Thanks for writing it. I’ll think this over more and possibly get back to you with some questions.

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