02-06-2022, 11:06 AM
I have always subscribed to this quote
"Even relatively safe investments entail some probability, however small, of downside risk.
The deleterious effects of such improbable events can best be mitigated through prudent diversification.
The number of securities that should be owned to reduce portfolio risk to an acceptable level is not great;
as few as ten to fifteen different holdings usually suffice. Diversification for its own sake is not sensible.
This is the index fund mentality: if you can’t beat the market, be the market".
- Seth Klarman (Margin of Safety)
For those interested in the publication, I believe I posted an online link a while back under resources.
I highly recommend the book, it was a very good read.
- Scoot
"Even relatively safe investments entail some probability, however small, of downside risk.
The deleterious effects of such improbable events can best be mitigated through prudent diversification.
The number of securities that should be owned to reduce portfolio risk to an acceptable level is not great;
as few as ten to fifteen different holdings usually suffice. Diversification for its own sake is not sensible.
This is the index fund mentality: if you can’t beat the market, be the market".
- Seth Klarman (Margin of Safety)
For those interested in the publication, I believe I posted an online link a while back under resources.
I highly recommend the book, it was a very good read.
- Scoot