Personal Finance

Less Is More: A Case for Concentrated Portfolios (maybe not just for day-trading)

  • Last Updated:
  • May 27th, 2015 2:42 pm
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Poll: How many stocks do u have in your non-day-trading portfolio? Broad ETF counts as MORE

  • Total votes: 5. You have voted on this poll.
1-5
 
1
20%
6-10
 
2
40%
11-15
 
0
0%
16 or MORE
 
2
40%
Deal Expert
User avatar
Apr 21, 2004
58648 posts
24637 upvotes

Less Is More: A Case for Concentrated Portfolios (maybe not just for day-trading)

I understand many of them are marketing materials for asset management / investment firms. I'd like to know your take about stock holdings concentration and diversification? I can understand how diversification as a good thing especially in a general rising market condition where concentration on a few countries or companies could have ignored Japanese or some other high flying equities market.

quick google search:
https://www.google.ca/search?q=diversif ... 2&ie=UTF-8

Less Is More: A Case for Concentrated Portfolios
http://www.lazardnet.com/us/docs/sp6/30 ... l+Advisors

Just Concentrate. Does minding fewer stocks add more oomph to a portfolio?
http://pages.stern.nyu.edu/~adamodar/Ne ... ontdiv.htm

Diversification versus Concentration . . . and the Winner is?
http://www.uts.edu.au/sites/default/files/wp18.pdf

Concentration: the case for putting all your eggs in one basket
http://www.ft.com/cms/s/0/d4e511fc-250f ... z3bMexsZ2x

Thoughts on Diversification vs. Concentration
http://basehitinvesting.com/thoughts-on ... entration/

Charlie Munger on Investment Concentration versus Diversification
http://25iq.com/2013/01/16/charlie-mung ... ification/
1 reply
Penalty Box
Aug 11, 2005
4175 posts
1432 upvotes
Depends on your mentality to life.

Do you go big or go home? Do you pull out or wear a condom? I think most people are afraid of losing wealth more than living a normal life, so diversification is better off for that mindset.

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