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Seven reasons for diversification

1. Diversification

Quote: You don't want to learn the same lesson again with a different asset class
Unquote: Wide diversification is only required when investors do not understand what they are doing.
2. Low Correlation
Quote: Low correlation means that different asset types have not performed in the same way
Unquote: Which way should we incline? Reason cannot answer.
3. Patience
Quote:
My favorite time frame for holding a stock is forever.
Throughout all my years of investing I've found that the big money was never made in the buying or the selling. The big money was made in the waiting.

Unquote: While we stop and think, we often miss our opportunity

4. Purity

Quote: Gentlemen prefer bonds.

Unquote: Stock-picking is like gambling: those who win well, seldom bet, but when they do, they bet heavily.

5. Lose Your Overweight

Quote:

Shoot the loser and buy more winners

If a kite can just catch the breeze, how high can it go...

Unquote: Diversification may preserve wealth, but concentration builds wealth.
6. Rebalance
Quote: Sell down to your sleeping point.

Unquote: Don't gamble. Take your savings and buy some good stock and hold it til it goes up, then sell it. If it don't go up, don't buy it.
7. Know Yourself
Quote:
Be Aware of what you Dream of
If you don't know where you're going, you'll end up somewhere else.

Unquote: The person who knows that he doesn't know much, knows much.

:) Falkor

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