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Subject:  Re: do you limit your holdings to a % of portfol Date:  3/29/2014  4:44 PM
Author:  TMFMurph Number:  74675 of 99380

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. ;-)

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