Re: Diversification
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Put 20% in bonds, the rest in 5-10 stocks and experience the magic of compounding.
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Also known as 'diversification'
Other than you saying that my strategy 'isn't smart' do you have any other thoughts to add on why?
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is no such thing as a sure thing, you are simply not getting the return that justifies the risk.
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I had it all in GOOG for several months and more than doubled up (with margin). What was my risk there? Not much with my stop-loss usage...
In the case of a business...there may be a lot more risk than with a stock, same with real estate...but there is very little risk of ruin (or even profit ruin) if I do it smart...IMO.
This is all assuming smart investments...a big assumption.
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Are you implying that if you invest in more than 1 venture, say two stocks, than that is 'diversification' ?
Surely not.
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No. Just that another great investment might present itself before I have decided to exit the first.
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