Invest
(Post 175/Year 3 Week 33)TipforThought:To diversify or not? that’s the question
By Sonicericsg  •  May 22, 2020
Credits to GrandpaLemon from investing note for his wise words



credits

Financial experts are keen to tell you to diversify your hard-earned money into a variety of assets such as stocks, bonds and real estate to get the best returns while hedging our risks but there is a powerful counter view.

A short quote from Warren Buffett in 2008 (similar to his 1998 comments):

"If you are a professional and have confidence, then I would advocate lots of concentration. For everyone else, if it’s not your game, participate in total diversification. If it’s your game, diversification doesn’t make sense. It’s crazy to put money in your twentieth choice rather than your first choice.

Charlie [Munger] and I operated mostly with five positions.

If I were running $50, $100, $200 million, I would have 80 percent in five positions, with 25 percent for the largest."

And then a longer excerpt from the book about Charlie...
Read the full article
By Sonicericsg
Hi everyone, I'm soniceric, my real name is of course not soniceric, it's just Ericsson :) The reason I name this blog as soniceric is a word play on the brand of "sony Ericsson" hence soniceric(geddit?) I am currently a 22 years old nsf who is about to ord soon and receiving a paltry ns allowance of $800 per month. To date, I have managed to save more than 10k and have already use the money for various purpose(emergency fund, peer to peer lending,posb invest saving and stocks, trading etc).
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance