Comments on: Portfolio Management and Asset Allocation

By: timelessinvestor

timelessinvestor — Wed, 13 Oct 2010 13:23:53 +0000

Hi! Jae,

I have other two questions for you please.

1. Previously you said that you “first started investing with $3000″. Then by that time, how did you manage your other money? Once you manage more and more money, how do you manage the rest of money that are not in your portfolio)? Did you place them in bonds?

2. Could you please give us a timeline evolution of your investment history? please indicate how much did you manage in 2005, 2006, 2007, …?

Thanks a lot!
T.I.

By: Adam@Asset Management Marketing EverydayTenacity

Adam@Asset Management Marketing EverydayTenacity — Sat, 13 Feb 2010 19:56:43 +0000

Hedging can be used to take care of some of the concentration risk. If you follow the investing logic of Investors Business Daily, there is nothing wrong with being concentrated in a few stocks, number differs based on portfolio size. Just have to be active in managing any losses to no more than 7% and only buy stocks when the market is in a confirmed uptrend.

By: KenC

KenC — Fri, 31 Jul 2009 21:36:38 +0000

Updated my blog with some notes on diversification from a Buffett talk that you can view online. here.
.-= KenC´s last blog ..Buffett on diversification =-.

By: KenC

KenC — Fri, 31 Jul 2009 20:52:21 +0000

@ Ash

Buffett has said that a non-diversified portfolio is good for investors who are very skilled and in the know. He has also said that investors on the opposite end of the spectrum (not as much clue) should be diversified.

On that note it is interesting to note that in the super investors of Graham and Doddsville it is noted that even a diversified Graham follow, Walter Schloss did extremely well. Graham himself was known for being heavily diversified.

Re-iterating what others has said. Thinking for yourself is key.
.-= KenC´s last blog ..MSFT Special Meeting Amendment? =-.

By: Jae Jun

Jae Jun — Thu, 30 Jul 2009 01:23:25 +0000

@ Sivaram,

I lost 30% of my portfolio value after the big bust up with EMAG. Had a good deal of money in that one position which went sour.

I’m not sure what your record is like but I’m sure it’s still better than most of the funds out there

By: Jae Jun

Jae Jun — Thu, 30 Jul 2009 01:21:48 +0000

@ Ash,

Thanks for the book title. I’ve heard Buffett talk about his thoughts on a focused portfolio but again, it really is up to the individual and how comfortable they are.

By: Sivaram Velauthapillai

Sivaram Velauthapillai — Wed, 29 Jul 2009 19:23:33 +0000

This is a very important issue if you are a stockpicker of any sort. Maybe I’ll write up on my blog how I ended up as a concentrated investor but, ultimately, as you conclude, there is no right answer. I ended up as a concentrated investor but it is very dangerous. One or two mistakes can seriously damage a portfolio and wipe out years of profits–at least if you aren’t a good investor like me I wonder if I will remain concentrated when my portfolio gets bigger…
.-= Sivaram Velauthapillai´s last blog ..Is China going to face serious problems within a few quarters? =-.

By: Ash

Ash — Wed, 29 Jul 2009 11:02:23 +0000

“The Warren Buffett Portfolio” by Robert Hagstrom is a good book to read on this subject. He argues that a focused investment strategy that is used by Buffett/Munger and few others is the best way to go.