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Quote for the day -miss-priced securities
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"Diversification is only a free good if one cannot identify miss-priced securities. Once the concept of miss-pricing is introduced, diversifying away from undervalued securities reduces a portfolio’s expected return. Instead of more diversification always being better, diversification becomes a trade-off: it lowers the risk but at the cost of also lowering expected return. We don’t want to dilute "our best ideas any more than is required" to be prudent." - Bill Nygren

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 - Scoot
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Quote for the day -miss-priced securities - by Scooterd - 12-12-2021, 12:50 AM
RE: Quote for the day - by fenders53 - 12-12-2021, 06:56 AM



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