Quotes About Portfolio

Good investment selection means looking at several sources before you decide on a stock.

The best argument for mutual funds is that they offer safety and diversification. But they don't necessarily offer safety and diversification.

When a stock doubles, sell half - then what you have is a free position. Then it becomes more of an art form. When you sell depends on individual circumstances.

I knew my ticket out of the suburbs was art school, so I worked really hard to develop my portfolio and get a scholarship.

As I said, i'm very quiet, i don't go around saying "I'm awesome!" but when I brought in my portfolio into DreamWorks and showed them what I could do, my art style is a lot wilder than I am.

Environmental influences almost invariably point investors down the path to investment failure. Advertisements flog stocks at equity market peaks, with nary a mention of diversifying fixed-income assets. After stocks suffer bear-market losses, the media tout the beneficial effects of owning bonds as an important part of a well-balanced portfolio. The overwhelming bulk of messages to investors suggest owning yesterday's darling and avoiding yesterday's goat.

Poor asset allocation, ill-considered active management, and perverse market timing lead the list of errors made by individual investors.

rich understanding of human psychology, a reasonable appreciation of financial theory, a deep awareness of history, and a broad exposure to current events all contribute to development of well-informed portfolio strategies.

investment success requires sticking with positions made uncomfortable by their variance with popular opinion. Casual commitments invite casual reversal, exposing portfolio managers to the damaging whipsaw of buying high and selling low. Only with the confidence created by a strong decision-making process can investors sell mania-induced excess and buy despair-driven value.

Emphasizing inefficiently priced asset classes with interesting active management opportunities increases the odds of investment success. Intelligent acceptance of illiquidity and a value orientation constitute a sensible, conservative approach to portfolio management.

Most asset classes contain investment vehicles exhibiting some degree of agency risk, with corporate bonds representing an extreme case. Structural issues render corporate bonds hopelessly flawed as a portfolio alternative. Shareholder interests, with which company management generally identifies, diverge so dramatically from the goals of bondholders that lenders to companies must expect to end up on the wrong side of nearly every conflict.

For periods of one to two years or less, investors ought to favor bank deposits, money-market funds or short-term bond funds.

The investor with a long-term horizon begins with a portfolio composed entirely of risky assets. Then, as the investor's investment horizon contracts, the investor moves assets from high-risk to low-risk positions.

Sensible investors take great care to minimize the tax bill associated with moving assets from the high-risk, long-term portfolio to the low-risk, short-term portfolio. Although the tax code introduces many complexities to investment decision making, as a starting point consider moving taxable long-term assets to the low-risk portfolio, thereby allowing tax-deferred holdings to continue to receive shelter from taxes.

Passive market timing consists of inadvertent deviations from long-term targets caused by the action of market forces on the values of a portfolio's various asset classes. Whether caused by an investor's active decision or an investor's passive indifference, market-timing returns result from deviations between hypothetical target portfolio returns and actual portfolio asset class returns.

Sensible investors avoid corporate debt, because credit risk and callability undermine the ability of fixed-income holdings to provide portfolio protection in times of financial or economic disruption.

Market timing fails to make an important contribution to institutional portfolio results, because investors quite sensibly show reasonable constancy in holdings of various asset types.

Casual commitments invite casual reversal, exposing portfolio managers to the damaging whipsaw of buying high and selling low. Only with the confidence created by a strong decision-making process can investors sell mania-induced excess and buy despair-driven value.

By relying on the decisions of others to drive portfolio choices, investors fail to take responsibility for the most fundamental fiduciary responsibility—designing a portfolio to meet institution-specific goals.

Investors generally fail to follow the most basic investment precepts. Instead of concentrating on the central issue of creating sensible long-term asset-allocation targets, investors too frequently focus on the unproductive diversions of security selection and market timing. Instead of constructing equity-oriented, well diversified, tax-sensitive portfolios, investors too frequently choose to mimic the conventional, poorly structured consensus

Investment returns stem from decisions regarding three tools of portfolio management: asset allocation, market timing, and security selection.

Investment success requires the conviction that comes from a fundamental understanding of the rationale for building the portfolio to certain specifications. Unless investors truly believe in the efficacy and validity of an unconventional approach to asset management, the end result almost certainly fails to withstand the wear and tear of market forces. Thoughtless

Owning a variety of asset classes means that some part of your portfolio will be doing well when the cyclical turmoil arises. A broadly diversified portfolio includes large capitalization stocks, small cap, emerging markets, fixed income, real estate and commodities.

First, I was Bavarian State Minister of Justice, and after the ministries of justice in the various states were dissolved I became Reich Minister without portfolio.