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Technology Stocks : Dell Technologies Inc.
DELL 123.21-7.9%12:59 PM EST

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To: nihil who wrote (82280)11/25/1998 9:55:00 AM
From: Moominoid  Read Replies (1) of 176387
 
it is a way of guaranteeing mediocre performance for the faint of heart. It is
based on portfolio theory that assumes (but cannot prove) that return and variance must be inversely
related


Return and variance should be positively correlated. There is plenty of empirical data to back that up though of course there will always be the exceptions.

I didn't notice the likes of Soros or Buffett being faint-hearted or under-performing and they are certainly diversified. It just takes much more work to find 10 good ideas rather than one.

David
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