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Too Much Concentration?
#1
I just finished reading the following article on Seeking Alpha:
http://seekingalpha.com/article/1898291-...-all-wrong

The author (Nelson Smith) makes a statement that dividend growth investors are concentrated too much on a few large cap consumer staple companies.

Overall, I believe he sets up a strawman in describing the number of companies that dividend growth investors have in their portfolios. From what I have seen on the blogs, investors do consider other stocks. So the concentration argument is a stretch for me.

Of course, dividend growth investors, including me, like the stability of these companies and therefore would prefer to own these companies. The real issue isn't whether we should own these companies, but whether we are paying too much for these companies.

How do you balance quality against valuation? I weight my portfolio by quality, but insist that I buy the best valued stock that meets my weightings.
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Messages In This Thread
Too Much Concentration? - by KenBob - 12-14-2013, 10:07 AM
RE: Too Much Concentration? - by Kerim - 12-14-2013, 11:20 AM
RE: Too Much Concentration? - by fiveoh - 12-14-2013, 11:45 AM



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