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Subject:  Re: Van Knapp on Diversification Date:  2/10/2013  2:14 PM
Author:  TMFMurph Number:  7829 of 9901

Hi kelbon!

While I don't necessarily agree with the specifics of his choices, the idea of spreading the dividend risk across a greater variety of companies ( from 10-15 to 15-25 ) has least for me and my long-term financial plan...which is why I posted it for consideration.

I don't think there is a problem identifying that many quality companies who won't have a problem paying...and increasing...their dividends faster than inflation. Further, going to a greater number of companies allows one to more effectively diversify by sector/industry.

Chasing yield for short-term yield's sake is wrong for me and my plan. Diversification is not.

But then, as Warren Buffett says, diversification is insurance against ignorance...and I have absolutely no problem agreeing that next to investors like WEB, I am "ignorant". ;-)

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