Quotes About Diversification

Because so few investors have the guts to cling to stocks in a falling market, Graham insists that everyone should keep a minimum of 25% in bonds. That cushion, he argues, will give you the courage to keep the rest of your money in stocks even when stocks stink.

Take the five stocks in the Dow Jones Industrial Average with the lowest stock prices and highest dividend yields. Discard the one with the lowest price. Put 40% of your money in the stock with the second-lowest price. Put 20% in each of the three remaining stocks. One year later, sort the Dow the same way and reset the portfolio according to steps 1 through 4. Repeat until wealthy. Over

First of all, recognize that an index fund—which owns all the stocks in the market, all the time, without any pretense of being able to select the "best" and avoid the "worst"—will beat most funds over the long run.

Hence, after this foreshortened discussion of the major considerations, we once again enunciate the same basic compromise policy for defensive investors—namely that at all times they have a significant part of their funds in bond-type holdings and a significant part also in equities.

It is still true that they may choose between maintaining a simple 50–50 division between the two components or a ratio, dependent on their judgment, varying between a minimum of 25% and a maximum of 75% of either.

Take the five stocks in the Dow Jones Industrial Average with the lowest stock prices and highest dividend yields. Discard the one with the lowest price. Put 40% of your money in the stock with the second-lowest price. Put 20% in each of the three remaining stocks. One year later, sort the Dow the same way and reset the portfolio according to steps 1 through 4. Repeat until wealthy.

Today's defensive investor can do even better—by buying a total stock-market index fund that holds essentially every stock worth having. A low-cost index fund is the best tool ever created for low-maintenance stock investing—and any effort to improve on it takes more work (and incurs more risk and higher costs) than a truly defensive investor can justify.

guiding rule that the investor should never have less than 25% or more than 75% of his funds in common stocks, with a consequent inverse range of between 75% and 25% in bonds.

Conversely, sound procedure would call for reducing the common-stock component below 50% when in the judgment of the investor the market level has become dangerously high.

When changes in the market level have raised the common-stock component to, say, 55%, the balance would be restored by a sale of one-eleventh of the stock portfolio and the transfer of the proceeds to bonds. Conversely, a fall in the common-stock proportion to 45% would call for the use of one-eleventh of the bond fund to buy additional equities.

Todo el mundo debe conservar parte de su patrimonio en el seguro refugio del dinero en metálico.

In our view there is no superior advantage in any fixed pattern of diversification. It is not essential to spread the risk around, in pre-established proportions, so that each of the major categories of American enterprise is included. What is essential is that a reasonable diversity of industries be achieved, so that the investor can feel he has his stake in a fairly good cross section of the economy. p143

I think one should definitely invest, not all the money in one go but keep some and invest the rest as and when required.

We keep our reserves both in dollars and in Euros mostly.

As much as with increased exploration new gas reserves can be found, what must be obvious to all is that our oil and gas reserves are not renewable and they are diminishing, and to protect the generations to come, we must engage in nothing short of a radical shift in the diversification of the economy.

When you get a little bit older, you're always trying to do something different from your siblings.

We all have different sides; nobody is just one thing.

I decided to take my foot off the pedal with all the detail. I'm sure after 'Animalia' and 'The Eleventh Hour,' readers thought that's what to expect from Graeme Base. With 'The Sign of the Seahorse,' I took a step away from the puzzle-book genre - that was more of an adventure story.

You'd be safe to hold 5% of your assets and savings in gold and silver. Insurance for the future.

The downside of dabbling in different industries is that you don't have your roots anywhere and you don't know where your real demand is.

Turning to direction is an inevitable branching-out.

With every album that I do, I try to feature a new instrument or sound.

But I think we need the international market.

Don't sell yourself short because without that you can't go far in life because after sports the only thing you know is sports and you can't do anything else with that.