Re: Diversification
[ QUOTE ]
Do you rank your picks? I have stocks I like more than others I buy, but I don't really rank them.
[/ QUOTE ]
I do rank my ideas, by discount to estimated intrinsic value, and estimated return over a reasonable holding period. It's sometimes difficult to compare a good long term hold vs. a merger arb, since the holding periods are so different. But I almost always prefer the great long term investment to a great short term investment, not just because of the benefits of tax free compounding over years, and lower long term capital gains rates, but because it's also less work.
If I could find five great long term holds, I'd have little to do other than play poker all day...
|