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URL:  http://boards.fool.com/where-he-and-i-do-differ-is-in-how-we-manage-our-30446845.aspx

Subject:  Re: MBIA Bonds? Date:  12/22/2012  12:18 AM
Author:  howardgt Number:  34578 of 35387

Where he and I do differ is in how we manage our risks. I wouldn't let a questionable situation --which MBIA certainly is-- become 2% of AUM without doing a whole lot more digging into their financials than I'm willing to do.

Charlie,

We agree here too... As a matter of fact, I think I’m even more conservative than you on this point.
I would NEVER allow any single high-yield issue to represent greater than 0.5% of my total assets.

What I said in the previous post was: -- "MBIA bonds presently represent about 2% of my junk allocation" -- .

And my junk allocation is a small portion of my total fixed income allocation (junk, munis, TIPs and CD’s).
And my fixed income is a minority of my total Assets (Equity is the big dog).

So you can see, that 2% of my junk is a very very small allocation of total AUM, and I’m not prepared to go higher.

When it comes to individual junk allocations, I’m extremely conservative.


BTW, Good Luck with your new handle and strategy for 2013.

Howard
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