When an investor focuses on short-term investments, he or she is observing the variability of the portfolio, not the returns - in short, being fooled by randomness.
If you hope to have more money tomorrow than you have today, you've got to put a chunk of your assets into stocks. Sooner or later, a portfolio of stocks or stock mutual funds will turn out to be a lot more valuable than a portfolio of bonds or CDs or money-market funds.
When you sell options, you get paid for assuming risk. That can be a profitable business, but it does not mix well with the risks inherent in a leveraged portfolio.
There's no use diversifying into unknown companies just for the sake of diversity. A foolish diversity is the hobgoblin of small investors. That said, it isn't safe to own just one stock, because in spite of your best efforts, the one you choose might be the victim of unforeseen circumstances. In small portfolios, I'd be comfortable owning between three and ten stocks.
If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value.
The great personal fortunes in the country weren't built on a portfolio of fifty companies. They were built by someone who identified one wonderful business. With each investment you make, you should have the courage and the conviction to place at least 10% of your net worth in that stock.
It's quite clear that stocks are cheaper than bonds. I can't imagine anybody having bonds in their portfolio when they can own equities, a diversified group of equities. But people do because they, the lack of confidence. But that's what makes for the attractive prices. If they had their confidence back, they wouldn't be selling at these prices. And believe me, it will come back over time.
The idea that a bell rings to signal when investors should get into or out of the stock market is simply not credible. After nearly fifty years in this business, I do not know of anybody who has done it successfully and consistently. I don't even know anybody who knows anybody who has done it successfully and consistently. Yet market timing appears to be increasingly embraced by mutual fund investors and the professional managers of fund portfolios alike.
I never really enjoyed getting a portfolio together then sending it out; whereas, putting up the website is quite an enjoyable experience. The net's just a much faster and more modern way to distribute things, and you have to embrace it.
I think that intelligent forecasting (company revenues, earnings, etc.) should not seek to predict what will in fact happen in the future. Its purpose ought to be to illuminate the road, to point out obstacles and potential pitfalls and so assist management to tailor events and to bend them in a desired direction. Forecasting should be used as a device to put both problems and opportunities into perspective. It is a management tool, but it can never be a substitute for strategy, nor should it ever be used as the primary basis for portfolio investment decisions.
The strategy we've adopted precludes our following standard diversification dogma. Many pundits would therefore say the strategy must be riskier than that employed by more conventional investors. We disagree. We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it.
Many novice real estate investors soon quit the profession and invest in a well-diversified portfolio of bonds. That's because, when you invest in real estate, you often see a side of humanity that stocks, bonds, mutual funds, and saving money shelter you from.
A blindfolded monkey throwing darts at a newspaper's financial pages could select a portfolio that would do just as well as one carefully selected by experts.
I have no little insight into the feelings of furniture, and treat books and prints with a reasonable consideration. How some people use their pictures, for instance, is a mystery to me; very revolting all the same--portraits obliged to face each other for ever--prints put together in portfolios.
The free market is at its best when everybody works in a fish bowl and tells you their point of view The hedge funds and portfolio managers have a right to do this We've muted the analysts and their presence in the system.
We have already significant sums of money in our petroleum fund, a fund created by law that includes all the revenues received from the Timor Sea, and invests in conservative, safe, long-term investment portfolios - right now in US Treasury Bonds.
But, when we started our product portfolio, we focused the mixed signal requirements first for image processing devices and then in audio applications , targeting our technology into the growing use of digital technology in consumer markets.
... skepticism about past returns is crucial. The truth is, much as you may wish you could know which funds will be hot, you can't - and neither can the legions of advisers and publications that claim they can. That's why building a portfolio around index funds isn't really settling for average. It's just refusing to believe in magic.
We have a constantly-changing portfolio of social media experiments. The first time we tried applying social technologies in a customer service department it became the most productive department in the company.
We've got a portfolio of companies that range all the way from hotels to television stations and cable TV companies, oil and gas, consumer products, and industrial products. If there's anything that I want to know more about, I have the opportunity. It's right in our portfolio. I can spend time at the factory or with the manangement and learn as much as I want. You can't get bored doing that.
A bulging portfolio of spiritual experiences matters little if it does not have the power to sustain us through the inevitable moments of grief, loss, and change. Knowledge and achievements matter little if we do not yet know how to touch the heart of another and be touched. Wisdom is alive only as long as it is lived, understanding is liberating only as long as it is applied.
The optimum portfolio depends on the various expectations of choices available and the degree of variance in performance which is tolerable. The greater the number of selections, the less will be the average year-to-year variation in actual versus expected results. Also, the lower will be the expected results, assuming different choices have different expectations of performance.
As I said, i'm very quiet, i don't go around saying "I'm awesome!" but when I brought in my portfolio into DreamWorks and showed them what I could do, my art style is a lot wilder than I am.
Greed is not defined by what something costs; it is measured by what it costs you. If anything costs you your faith or your family, the price is too high. Such is the point Jesus makes in the parable of the portfolio.
While we've doubled renewable energy, it was only a tiny portion of the energy portfolio to start with. But what we did was totally take the lid off fossil fuel extractions in every way imaginable. On the day following [Barack] Obama's trip to the Louisiana floods, you know, we had, I think, another 25 million acres that went on sale in the Gulf for further extraction.
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