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. icegeek

    icegeek

    i believe in diversification.
     
    #61     Mar 7, 2019
    murray t turtle likes this.
  2. Brk investors receive a moderate return. The day of significant market beating is past for berkshire, the firm is way too big.
     
    #62     Mar 16, 2019
    rubbl likes this.
  3. I use short options to trade brk.b
     
    #63     Mar 16, 2019
  4. sfwind

    sfwind

    The trick is to strike a balance. Easy said than done. At least 15 to 20 positions in order to manage risk effectively. Then how to weight each position is another art.
     
    #64     Mar 31, 2019
  5. It depends, pic the right stock and you're good to go. But usually advisors use it to churn your account because they're poor stock pickers. Plus they're paid by commision. I can name a dozen+ stocks you're better off buying any one of them and hold. Then use options ...
     
    #65     Mar 31, 2019
  6. tomorton

    tomorton

    Diversification in the forex field fails when risk tolerance falls (or rises) significantly across the wider financial sector. Look at the Brexit effect for the last 2 months or so. Why would the UK leaving the EU have an impact on USD/JPY, or AUD/CAD? But yet it has.
     
    #66     Apr 1, 2019
  7. sfwind

    sfwind

    Go for it, but be certain you can afford to lose it all.
     
    #67     Apr 17, 2019
  8. In a portfolio of stocks, how many stocks is considered over-diversification?
     
    #68     May 4, 2019
    murray t turtle likes this.
  9. %%
    [1]Single stock is too much risk; ask GM, DAL+ Bear Stearns hit the dirt in a bear market.Plus more traders market risk since your JAN, 2009 post; investments that pay dividends may do well. NOT a prediction, not much of a DOW watcher.:cool::cool:, :cool::cool::cool::cool::cool::cool:
     
    #69     May 20, 2019
  10. rubbl

    rubbl

    There isn't a number, market risk will always exist for every stock,so i think a proper cash/equity balance is more important. Diversify to the extent that localized sector or company disasters won't tank you.
     
    #70     May 20, 2019