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Author: TMFMurph Big gold star, 5000 posts Old School Fool Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76101  
Subject: Re: do you limit your holdings to a % of portfol Date: 3/29/2014 4:44 PM
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Hi 2gifts!

As Warren Buffett says, diversification is insurance against ignorance...and compared to the WEB's of the world, I am "ignorant";
thus, no more than 5% in any one stock and no more than 20% in any one sector.

Does this limit my returns a bit? Maybe.

But then, I not trying to "maximize my returns" or beat the S&P 500 by "X"%; rather I'm trying to generate the returns needed to fund 100% of my inflation-adjusted long-term financial plan ( reviewed/revised annually), with the least risk ( "risk" being defined for me as the probability of running out of money before I die ).

Also, a more diversified portfolio allows me to sleep well at night. ;-)

Cheers!
Murph
Home Fool
Different investing strokes, for different investing folks....with different financial circumstances, goals and risk tolerances
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