Diversification good or bad?

[Innocie]

My suggestion is having a right diversification can help generates a very good return.
When I say "right", it means it should be diversification of best of one or two in each category in each industry or each group, but not random picks.
Say for instance,
In finance industry, pick 2/3 best stocks (best one for large cap and best one for midcap)/best small cap),
In transportation industry, pick 1 best stock.
In technology, pick 1 and so on.

That's what I call it a "right diversification."

And it's always wise to diversify the industries.

 

[ironchef]

My suggestion is having a right diversification can help generates a very good return.
When I say "right", it means it should be diversification of best of one or two in each category in each industry or each group, but not random picks.
Say for instance,
In finance industry, pick 2/3 best stocks (best one for large cap and best one for midcap)/best small cap),
In transportation industry, pick 1 best stock.
In technology, pick 1 and so on.

That's what I call it a "right diversification."

And it's always wise to diversify the industries.

So what are your criteria for "best"?

 

[qxr1011]

===Diversification good or bad?===

it mostly uselsess

 

[murray t turtle]

===Diversification good or bad?===

it mostly uselsess

%%
Sounds right;
but since DOW transports have changed so much since 1929-33, i may find a more suitable sector than that for me.I guess, now that Mr Buffet diversified in to tech stocks like AAPL; i guess its OK to diversify......

 

[qxr1011]

====i guess its OK to diversify......=====

diversification is no substitution for the working method

those who have it - concentrate

those who don't - can diversify (put a bandage on the otherwise exposed ass)

Leo Tolstoy once said:"In the life you are either strong or you are asleep"

 

[murray t turtle]

====i guess its OK to diversify......=====

diversification is no substitution for the working method.....


Leo Tolstoy once said:"In the life you are either strong or you are asleep"

%%
Thats a key to strong health;
proper sleep.That's right. NOT sure if it helps GE,or DB but should help most. NOT a prediction

 

[Innocie]

So what are your criteria for "best"?

Best diversification?
That would be the one when you take a comparison of all picked stocks with its competitor (stocks) fundamentally/ technically. Growth of revenue, debt, dividend plays the major role.

 

[ironchef]

Best diversification?
That would be the one when you take a comparison of all picked stocks with its competitor (stocks) fundamentally/ technically. Growth of revenue, debt, dividend plays the major role.

Thank you.

 

[viruscore1]

It's a phrase used by advisors to churn accounts. And make others appear like they know what they're talking about. Many BRK investors own 1 stock, and became wealthy. Warren has something to say about the topic.

 

[ironchef]

Peter Lynch's definition of diversification: Diworsification.