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+--- Thread: Quote for the day -miss-priced securities (/showthread.php?tid=2063)
Quote for the day -miss-priced securities - Scooterd - 12-12-2021
"Diversification is only a free good if one cannot identify miss-priced securities. Once the concept of miss-pricing is introduced, diversifying away from undervalued securities reduces a portfolio’s expected return. Instead of more diversification always being better, diversification becomes a trade-off: it lowers the risk but at the cost of also lowering expected return. We don’t want to dilute "our best ideas any more than is required" to be prudent." - Bill Nygren
Others Mileage may Vary (and usually does)
- Scoot
RE: Quote for the day - fenders53 - 12-12-2021
I think I tried this around 1997 but I am trying to block out that memory.
I believe it to be true in moderation though. I may not need to be invested in all 11 S&P sectors.