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underscored

@underscored

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Most people think diversification is about owning many things. It's actually about owning things that are wrong at different times and for different reasons. The goal isn't to avoid being wrong — it's to ensure that being wrong never kills you.

— Howard Marks, Mastering the Market Cycle (2018)
3w ago

Investors have been so oversold on diversification that fear of putting too many eggs in one basket has caused them to put far too little thought into individual eggs. Diversification is a hedge against ignorance, nothing more.

2mo ago
ftav
Money has ruined markets

What's being penalised is diversification itself. Punishment awaits any portfolio that doesn't look like the index, says UBS. Clever stock picking won't deliver outperformance like it once did, not just because it's hard, but because it means allocating cash away from the dominant eight.

4mo ago

Underscored — save the words that stop you in your tracks.

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