Comments on: The best asset allocation strategy to follow http://www.zdiaz.com/2009/03/the-best-asset-allocation-strategy-to-follow/ Raves, rants and the miscellaneous ramblings of a guerilla blogger Wed, 27 Feb 2013 14:35:06 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: zigfred http://www.zdiaz.com/2009/03/the-best-asset-allocation-strategy-to-follow/comment-page-1/#comment-3077 zigfred Tue, 31 Mar 2009 03:06:33 +0000 http://www.zdiaz.com/?p=1647#comment-3077 Xuzhu: Yep Buffett deviated from Graham's teachings when it came to diversification. In this particular arena, Buffett is following the principles set forth by John Meynard Keyenes and Philip Fisher. That's why Buffett used to say "I'm 85 % Graham, 15 % Fisher" But I think he is actually 50 % Graham and 50 % Fisher-Keynes-Williams and of course Munger." Anyway, I'll write about this in another posts. "The main argument is that you can monitor/know your business if there are few. Buffett would also encourage that if you are sure with a particular stock, you place 20% of your net worth on it." Yep, I agree ! Two thumbs up ! Xuzhu: Yep Buffett deviated from Graham’s teachings when it came to diversification. In this particular arena, Buffett is following the principles set forth by John Meynard Keyenes and Philip Fisher. That’s why Buffett used to say “I’m 85 % Graham, 15 % Fisher” But I think he is actually 50 % Graham and 50 % Fisher-Keynes-Williams and of course Munger.” Anyway, I’ll write about this in another posts.

“The main argument is that you can monitor/know your business if there are few. Buffett would also encourage that if you are sure with a particular stock, you place 20% of your net worth on it.” Yep, I agree ! Two thumbs up !

]]> By: Xuzhu http://www.zdiaz.com/2009/03/the-best-asset-allocation-strategy-to-follow/comment-page-1/#comment-3030 Xuzhu Thu, 26 Mar 2009 09:45:29 +0000 http://www.zdiaz.com/?p=1647#comment-3030 Looks like Ben Graham had a default 50:50 for bonds/equities for a defensive investor; and 75:25 for enterprising investor when equities market starts falling. the reverse would be for a roaring bull market. Graham also advocates diversification. The present-day Buffett actually has a concentrated shares, which means that he carries no more than 20 equities on his portfolio. There is no rule for this one. Munger, his vice-Chairman has 3-4 equities. The main argument is that you can monitor/know your business if there are few. Buffett would also encourage that if you are sure with a particular stock, you place 20% of your net worth on it. Just my two cents. Looks like Ben Graham had a default 50:50 for bonds/equities for a defensive investor; and 75:25 for enterprising investor when equities market starts falling. the reverse would be for a roaring bull market.

Graham also advocates diversification.

The present-day Buffett actually has a concentrated shares, which means that he carries no more than 20 equities on his portfolio. There is no rule for this one. Munger, his vice-Chairman has 3-4 equities.

The main argument is that you can monitor/know your business if there are few. Buffett would also encourage that if you are sure with a particular stock, you place 20% of your net worth on it.

Just my two cents.

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