Diversification good or bad?

Discussion in 'Risk Management' started by oraclewizard77, Jan 22, 2009.

Diversification is the holy grail.

Poll closed Feb 1, 2009.
  1. Stay Diversified

    8 vote(s)
    72.7%
  2. Concentrate your portfolio in just a few stocks.

    2 vote(s)
    18.2%
  3. Stay with Cramer

    1 vote(s)
    9.1%
  4. Way too many polls here on ET

    0 vote(s)
    0.0%
  1. I try to stick to 5% for stocks and 10% for EFT's, but I would rebalance at 10 and 20%.
     
    #151     Aug 26, 2021
  2. deaddog

    deaddog

    Are you outperforming SPY
     
    #152     Aug 26, 2021
  3. Overnight

    Overnight

    Very few do. Why is that? Hrmmmm
     
    #153     Aug 26, 2021
    Bastion_01 likes this.
  4. deaddog

    deaddog

    Could it be overdiversification?
     
    #154     Aug 26, 2021
  5. Overnight

    Overnight

    What, you mean like the stupid 70/30 equity to bonds or whatever guidance?
    Diversification died years ago.

    F Bonds and other Treasuries! Bollocks! How'd they perform over the PAST
    5 years? 1.x percent on average? WhatEVER.
     
    #155     Aug 26, 2021
  6. You guys don't outperform the market, S&P SPY, historically? What are you doing then, wasting your time actively trading? 99.1% of the people in this forum, and essentially all over, should just buy and hold the S&P instead of devoting so much of your time and life and mind trying to generate and gamble and extract money from the market.

    Diversification is for complete, brainless, common amateurs -- no offense to anyone out there. Just saying.
    Develop a key mastery in something. Be an expert at that one thing. Be the best at that one thing. A surgical killer and philosopher at that one thing.
     
    Last edited: Aug 26, 2021
    #156     Aug 26, 2021
  7. Overnight

    Overnight

    We're never going to outperform the SP. That is a given. It is impossible. Nobody in the universe can do it. Except the people that do it.

    Mostly.

     
    #157     Aug 26, 2021
  8. themickey

    themickey

    What sort of one thing? Examples....?
     
    #158     Aug 27, 2021
  9. Have specialization. Sharpness. Focus. Don't be a relatively vague, dull, generalists.
    Know everything about Mickey Mouse, that one thing. Don't know everything about Disneyland, and theme parks.

    Be a Jedi Master...at one thing in the market of trading. You only have, rather, limited brain power and attention span. You can't grasp everything out there, and expect to truly excel.

    This place is called Elite Trader, not General Trader or Vague Trader or Dull Trader. So be...Elite, truly Elite, at something. That one thing.
    If you accept these principles, digest them well, in life, you will be someone grande and respected.
     
    Last edited: Aug 27, 2021
    #159     Aug 27, 2021
    Bastion_01 likes this.
  10. i assume you have expert knowledge regarding DIS financials, earnings, potential future game changing catalysts. That expertise would be your "one thing" right?
     
    #160     Aug 27, 2021