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

To: Jurgis Bekepuris who wrote (56483)	12/31/2015 3:38:12 AM
From: bruwin	Respond to of 78750

' ... within a hedge fund framework. A lot of famous hedge fund managers haven't." The problem, I'd say, with having a portfolio containing many, many shares, such as the example of a Hedge Fund, is the fact that the more shares one includes the more the overall result moves to an average of the performances of the companies. The contributions of the better performers gets dragged down by the contributions of the poorer performers. Maybe that's one of the reasons why the likes of Buffett recommends holding a relatively lower number of companies in one's portfolio than do the likes of Hedge Funders, etc... Needless to say, it will also depend on the criteria one refers to in choosing those companies in the first place.