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Strategies & Market Trends : Greenblatt's Little Book That Beats The Market -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (4)12/9/2005 6:11:42 AM
From: Madharry  Read Replies (2) | Respond to of 218
 
Paul, take what i say with a grain of salt but I recall reading either an academic paper , or a synopsis of one which indicated that having 30 different stocks essentially gave one virtually all the diversification one needed- like a 95% confidence level sort of thing so I am surmising that they selected 30 as a non-specific number for diversification rather than being specific to this methodology.

BTW does the methodology say why they rebalance after 12 months? that seems strange to me and arbitrary.