Quote for the day -miss-priced securities

[Scooterd]

"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