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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grantcw who wrote (41205)	1/27/2011 9:46:43 AM
From: nikkei86	Read Replies (2) \| Respond to of 78601

Hi Grant! I'm a grad student at the moment and the time I have available to research stocks is extremely limited. So, whenever I find a really really good idea, I load up. In the past, I haven't hesistated to put 100% of my capital in my best 2 to 3 ideas. When I'm out of ideas, I play the broad macro moves through various ETFs. ex. RJI, SPY This past upturn has been the easiest because of the amount of money the Fed is printing. If the Fed continues, the markets will continue to go up. There will be some technical pullbacks along the way, but, again, as long as the Fed prints the money, this puppy is going up. I think Buffett put it best when he said that everyone should treat each trade as if it were one of twenty trades one could make in a lifetime. You get a twenty-punch punch card. The point is that you wait. You fight the temptation to put money into play. Buffett commented on this. He said having a lot of cash sitting on the sidelines is dangerous, because you want to put it to work. He had this problem before he bought the US Air preferred stock. And you load up when you have a good idea. This idea is probably more of Munger's than Buffett's. Munger talks about this idea a lot. It just seems so obvious. Your best ideas you load up on. But if you don't have time for research, or you're in retirements, etc., etc., wide diversification makes sense.

To: Grantcw who wrote (41205)	8/26/2011 3:30:45 PM
From: Grantcw	Respond to of 78601

Diversification - Well, after all the warnings I was giving people about diversification early in the year (I'm not initially going to go in much detail here, unless someone is interested as I'm not proud of it) but let's just say that I managed to build up a 40% portfolio position in an E&P, buying at what I considered 'crazy prices' on the way down. This somehow worked for me (as of today at least...), getting me back to index performance for the year (still at a loss, yes), but it was a nasty roller coaster and drove me to drink extra beers on my pergola on more than one day this summer. So, when I keep talking about rotating into some diversified cef's trading at a discount instead of individual stocks, this is one of the major reasons why. I need to step on the diversification pedal... -Grant