No. of Recommendations: 1

If you are going to take a fundy approach then every company you research gets a bond and an equity sniff before it gets round filed or added to the port. Crunch the numbers and if "ew too expensive for equity risk" run an Etrade scan and see what the debt is trading for, does that pay you enough for the risk you are taking?

While you are waiting for a few fat pitches you will spin up pretty quickly. You can flip the process and scan the bonds screens and tag a list and if the debt is not attractive switch over and see if the equity is worth a trip.

My theory is that if you do your homework and legwork you are most likely going to buy the right quality priced at the right risk most of the time. It does not really matter if you hold X% of anything as long as your bottom up process told you it was a go. Buy enough of properly priced quality/risk and portfolio diversification takes care of itself. The real risk hedge is that you know what you bought, why you bought it and have bracketed its likely results. You are likely to win more often than you lose. A near 10% compound return over the last 5 years is quality equity work and the types of skills you are currently using cross over pretty well.

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