July 30, 2021

13 thoughts on “Diversify OR Not?

  1. Hi Rolf

    For Buffett and Rogers , they "diversify" the risks to others.

    How about retail investors ?

    1. Hi Small Time Investor,

      Majority of retail investors absorb the risk and diversify their earnings to many others. We just need to make sure we fall into the minority group. 🙂

  2. I diversified and then leave behind few concentrates. So how do I classified as?

    Fake orange or apple juices?

    1. Hi CW8888,

      I am not sure, but suddenly I feel hungry for dinner already.

      For meat selection of my meal, if I love chicken more than beef, pork, fish, seafood etc, I will eat chicken 3 days a week and rest of 4 days I split. I think it works well for me.

      Of course some people prefer eat only chicken 7 days, and some everyday change.. as long as u like and don't "Lau Sai" or be under-nutrition. More IMPT dun be a burden to those who love or close to u.

      For your meal, since u have different appetite, and owns ur body for so many years, u know best for urself. At most nutritionist can give u facts and consequences but not dictate ur food!

      Oh ya… I love orange juice, but fresh is the best, if not must be nutritious or taste good. Fake orange… maybe not for me. Apple juice occasionally is nice. Fresh also, thank u!


  3. Rolf,

    The question to ask is whether you 2 camp mates after discovering you are more "diversified" than them, do they start questioning their focus and concentration strategies?


    1. Hi SMOL,

      Agree! What we do initially is no more important than what we do next after learning more.

      Basically Mr. B says he did not put lots of money into his stocks, so he prefer to status quo his strategy. Mr. A who wanted to turn full time spend more time educating me about stocks and I prefer to listen then. He does not know I am diversified. 🙂

  4. Hi Rolf

    Many things in life and also in investing we are thinking from a binary decision point of view. A good example would be to diversify or go all on one stock, go in all cash or out of cash, etc.

    The thing about what we are doing as an action is usually vastly different from the academic thinking of the binary decision. And depending on one's objective, to diversify or not is certainly different too in the eyes of different investors.

  5. No right or wrong in investing?

    Laughing to the bank or crying when looking at our bank statement?

  6. Hi B,

    Yes, human beings are born with different height and size afterall. Hence all are different!

    But out of the differences, we can still classify or categorize!

    Guess, if you are not so in depth or not willing to spend too much time into investing, it is better to keep risk down. I think this is a general rule of thumb I advocate for most.

  7. Hi CW,

    No right no wrong? I still think there is at least a general guidlines amateur must follow to mitigate risk.

    Unless the bank account statement is in the name of you, but money is not from you, then you will feel sad but not really crying.

  8. Hi rolf,

    Have your two friends tested their strategy and survived through at least one cycle of bull /bear? If yes, then go ahead. If not, then it's still work in progress. Doesn't matter full time or part time. The market will teach people the lessons they had to learn.

    Just hope the lessons won't be too expensive..

    1. Hi LP,

      Agreed! You have to go thru the trough and peak to fully know what is it all about. I did not ask them as we are all adults now and it's not easy to absorb advices from non- guru like me. Maybe Peter Lynch tells them they will listen better!

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