Jeffrey Bash. We just won't ever resolve the concentration vs. diversity argument. Even as I defer to your successful performance record, as I surmise it to be over the past years. Beats my performance. (Although it seems to me I ought to have beaten DODGX with its annualized 12.5% over five years.)
As I often say, I am looking for a normative way to invest. That is, what is the best way one ought to plunk down money to be a successful investor? To me, having 10 microcap picks and being so attuned that one makes several phone calls to the CEO - that is just too specialized and impractical for the average investor (me). Sufficiently effective for you and others perhaps, but also a heavy bet on only one sector of the market (microcaps), and apparently on reports by management. To me, that's risky too, because I do not trust CEOs - too many are ego-bound, biased salesmen.
My idea of diversity also has its problems for the average Joe. It requires more money (than if one were accumulating shares in only a few companies), and, since positions are acquired over time, takes much longer to implement.
That said, anyone who follows my posts and suggestions and yours, would likely be better served if they gave much more credence to the few recommendations you mention here. Readers can at least be assured, I believe, that you have indeed THOROUGHLY considered all aspects of your pick. To compare with me, my DD is superficial at best.
(OTOH, imo, superior DD is not the necessary and sufficient condition leading to superior performance. But it helps -g-) |
