Skip to main content
No. of Recommendations: 0

How many positions one carries --be it stocks, bonds, whatever-- is a direct function of one's personality which --in turn-- determines one's investment plan. I HATE to make big bets, but I'm willing to make many, many small ones, none of which will get me thrown out of the game.

As to sticking with corporates alone, that, too, is a personal decision, but one I think isn't smart or consistent with classic, Ben Graham-style value investing. When munis are being trashed --as they were in the fall of '10 (or whenever), but after Meredith Whitney's pan of them happened-- solid, upper-tier credit could be picked up that offered safer, better returns than corporates. Same-same with every niche in the asset markets. You've gotta buy what's on sale, when it's on sale, and you never, ever worry about "laddering", or "diversifying", or any of the other MPT nonsense.

However, here's the irony. If your buying is disciplined and consistent and your risk metrics emphasize prudence, you end up "properly diversified" with a robust, 'all-weather' portfolio that lets you sleep at night. E.g. YTD, I'm now down just (-1.49%). That's tolerable, and it gives me the ability to step back and to wait things out.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.