Comments on: What is the best Portfolio diversification strategy http://www.zdiaz.com/2009/03/what-is-the-best-portfolio-diversification-strategy/ 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/what-is-the-best-portfolio-diversification-strategy/comment-page-1/#comment-11720 zigfred Sat, 16 Oct 2010 12:42:38 +0000 http://www.zdiaz.com/?p=1766#comment-11720 ZBlackmar: Glad to meet another same minded investor like you. Thanks for dropping by my blog. Will be glad to further share investing ideas with you. You can also visit my stock market investing blog at <a href="http://www.stockmarket-investing.com" rel="nofollow">www.stockmarket-investing.com</a> ZBlackmar: Glad to meet another same minded investor like you. Thanks for dropping by my blog. Will be glad to further share investing ideas with you. You can also visit my stock market investing blog at http://www.stockmarket-investing.com

]]> By: ZBlackmar http://www.zdiaz.com/2009/03/what-is-the-best-portfolio-diversification-strategy/comment-page-1/#comment-11674 ZBlackmar Thu, 14 Oct 2010 21:46:41 +0000 http://www.zdiaz.com/?p=1766#comment-11674 I couldn't agree with you more. I work at a financial firm in Arizona and we use this exact strategy of "focus" investing. We specialize in SMA's and our portfolio manager never has more than 15 securities at a time. We also have a long term goal for our clients. Most people jump in and out of the market without knowing why, but hope to make a quick buck. Staying with a company with good balance sheets, good earnings,great management, etc are the fundementals of being an investor, though most people now are only speculators I couldn’t agree with you more. I work at a financial firm in Arizona and we use this exact strategy of “focus” investing. We specialize in SMA’s and our portfolio manager never has more than 15 securities at a time. We also have a long term goal for our clients. Most people jump in and out of the market without knowing why, but hope to make a quick buck. Staying with a company with good balance sheets, good earnings,great management, etc are the fundementals of being an investor, though most people now are only speculators

]]> By: zigfred http://www.zdiaz.com/2009/03/what-is-the-best-portfolio-diversification-strategy/comment-page-1/#comment-8068 zigfred Sat, 27 Mar 2010 11:31:44 +0000 http://www.zdiaz.com/?p=1766#comment-8068 Van: I am writing a post this soon. However I will give you a quick answer. A lot of studies has shown that investing lump sum always if not more often beats cost averaging. Just google "cost averaging vs. lump sum" and you will see a lot of articles about this. I do not cost average because I earn more following a certain value investing strategy. If you do not wish to study value investing, the best way to do it is through an index fund as Buffett says. So if you must "cost average" do it through an index fund that is the best alternative to other than picking stocks intelligently yourself. Van: I am writing a post this soon. However I will give you a quick answer. A lot of studies has shown that investing lump sum always if not more often beats cost averaging. Just google “cost averaging vs. lump sum” and you will see a lot of articles about this.

I do not cost average because I earn more following a certain value investing strategy. If you do not wish to study value investing, the best way to do it is through an index fund as Buffett says. So if you must “cost average” do it through an index fund that is the best alternative to other than picking stocks intelligently yourself.

]]> By: Van http://www.zdiaz.com/2009/03/what-is-the-best-portfolio-diversification-strategy/comment-page-1/#comment-8067 Van Sat, 27 Mar 2010 08:52:49 +0000 http://www.zdiaz.com/?p=1766#comment-8067 Hi Zigfred, May I know why you do not like to cost-average? Is it better to just buy using a lump sum when a stock is cheap than to cost-average? Also, what if I don't have a lump sum yet to invest? I just use a percentage of my monthly salary to buy more shares each month. That's the main reason I cost-average. Do you suggest that I save up the percentage I would allot to cost-average monthly and buy shares using a lump sum when the opportunity strikes (great stocks are undervalued)? Thank you. Hi Zigfred,

May I know why you do not like to cost-average? Is it better to just buy using a lump sum when a stock is cheap than to cost-average? Also, what if I don’t have a lump sum yet to invest? I just use a percentage of my monthly salary to buy more shares each month. That’s the main reason I cost-average. Do you suggest that I save up the percentage I would allot to cost-average monthly and buy shares using a lump sum when the opportunity strikes (great stocks are undervalued)?

Thank you.

]]> By: zigfred http://www.zdiaz.com/2009/03/what-is-the-best-portfolio-diversification-strategy/comment-page-1/#comment-7973 zigfred Sun, 21 Mar 2010 09:58:07 +0000 http://www.zdiaz.com/?p=1766#comment-7973 Van: Hello. Thanks for the questions. As Warren Buffett said the best option for the know nothing investor is to invest in an index fund. However the best choice for a know something investor is to do value investing, the way Warren Buffett and other value investors did it. So to answer your question, I'd rather invest in 4 to 5 carefully picked stocks in the Philippine stock market an manage it using value investing, Warren Buffett techniques than invest in an index fund. However if you don't want to do any kind of fundamental investing or learn value investing for that matter then the best way for you to do it (since this way you can be classified as a "know nothing" investor) is to do it through an index fund. In other short for the know something investor (or those willing to learn) go for value investing. For the no nothing investor go for an index fund. That's just it. If you are keen on learning value investing, read all the books you can on the subject especially those about Warren Buffett's strategy. You will find out that you will be able to do much more better than any mutual fund. However if you do not have time to learn or research company fundamentals just invest in an index fund. Personally I hold on to about 5 to 7 stocks (Philippine stocks) most of them Blue chips. Some of them I bought at a very nice price (below book value) some of them at a fair price. I will try to hold on to them forever and will not plan to sell them until the economics of the underlying business has change, or a better opportunity presents itself. If the market overvalues them so much, then I will attempt to fearful when others are greedy. My portfolio turn over is quite low. This is a common feature among value investors. By the way you should consider buying some blue chips now. They may not be dirt cheap but some blue chips are great companies with fair prices as of now. If you want to learn more about stock market investing click here to visit my <a href="http://www.stockmarket-investing.com" rel="nofollow">stock market investing </a>blog I do not do cost averaging. I don't believe in the strategy. I simply try to pick stocks using value investing methods or as Buffett puts it I simply try to buy wonderful companies with durable competitive advantage at a fair price. About buying an international index fund, no I do not have an idea on that because I have not done it myself, but I am sure it could be done. We are so connected today through the internet so I think it is not impossible. (You could invest in an index fund mimicing the Philippine stock exchange, I think BPI Asset management and Phil Equity fund runs an index fund) Hope I have been of a help to you. Van: Hello. Thanks for the questions. As Warren Buffett said the best option for the know nothing investor is to invest in an index fund. However the best choice for a know something investor is to do value investing, the way Warren Buffett and other value investors did it. So to answer your question, I’d rather invest in 4 to 5 carefully picked stocks in the Philippine stock market an manage it using value investing, Warren Buffett techniques than invest in an index fund. However if you don’t want to do any kind of fundamental investing or learn value investing for that matter then the best way for you to do it (since this way you can be classified as a “know nothing” investor) is to do it through an index fund. In other short for the know something investor (or those willing to learn) go for value investing. For the no nothing investor go for an index fund. That’s just it. If you are keen on learning value investing, read all the books you can on the subject especially those about Warren Buffett’s strategy. You will find out that you will be able to do much more better than any mutual fund. However if you do not have time to learn or research company fundamentals just invest in an index fund.

Personally I hold on to about 5 to 7 stocks (Philippine stocks) most of them Blue chips. Some of them I bought at a very nice price (below book value) some of them at a fair price. I will try to hold on to them forever and will not plan to sell them until the economics of the underlying business has change, or a better opportunity presents itself. If the market overvalues them so much, then I will attempt to fearful when others are greedy. My portfolio turn over is quite low. This is a common feature among value investors. By the way you should consider buying some blue chips now. They may not be dirt cheap but some blue chips are great companies with fair prices as of now. If you want to learn more about stock market investing click here to visit my stock market investing blog

I do not do cost averaging. I don’t believe in the strategy. I simply try to pick stocks using value investing methods or as Buffett puts it I simply try to buy wonderful companies with durable competitive advantage at a fair price.

About buying an international index fund, no I do not have an idea on that because I have not done it myself, but I am sure it could be done. We are so connected today through the internet so I think it is not impossible. (You could invest in an index fund mimicing the Philippine stock exchange, I think BPI Asset management and Phil Equity fund runs an index fund)

Hope I have been of a help to you.

]]> By: Van http://www.zdiaz.com/2009/03/what-is-the-best-portfolio-diversification-strategy/comment-page-1/#comment-7962 Van Sat, 20 Mar 2010 14:59:41 +0000 http://www.zdiaz.com/?p=1766#comment-7962 Hi Zigfred, I'd like to know your take on this. Which is better, to invest in an index fund (Philequity PSE Index Fund) or to invest in 4-5 carefully picked stocks in the Philippine Stock market? This is assuming you would do cost-averaging on either strategy. I'm also a newbie and I'm currently holding 3 issues (blue-chip) and I'm wondering if I should continue doing cost-averaging on these three or buy an index fund instead and then cost-average on that. I also have a mutual fund and I'm wondering if I should just transfer that money to buy an index fund. Also, is there a way to buy shares of an international index fund? Like S&P for instance. Thanks! This blog has been a great help. Hi Zigfred,

I’d like to know your take on this. Which is better, to invest in an index fund (Philequity PSE Index Fund) or to invest in 4-5 carefully picked stocks in the Philippine Stock market? This is assuming you would do cost-averaging on either strategy.

I’m also a newbie and I’m currently holding 3 issues (blue-chip) and I’m wondering if I should continue doing cost-averaging on these three or buy an index fund instead and then cost-average on that. I also have a mutual fund and I’m wondering if I should just transfer that money to buy an index fund.

Also, is there a way to buy shares of an international index fund? Like S&P for instance. Thanks! This blog has been a great help.

]]> By: zigfred http://www.zdiaz.com/2009/03/what-is-the-best-portfolio-diversification-strategy/comment-page-1/#comment-4255 zigfred Thu, 25 Jun 2009 16:41:17 +0000 http://www.zdiaz.com/?p=1766#comment-4255 X: My advice is become a value investor. To do this you need to read a lot on value investing. Anyway from time to time, I write about this stuff in my blog so just drop by :-) More power and God bless in your investing :-) X: My advice is become a value investor. To do this you need to read a lot on value investing. Anyway from time to time, I write about this stuff in my blog so just drop by :-) More power and God bless in your investing :-)

]]> By: zigfred http://www.zdiaz.com/2009/03/what-is-the-best-portfolio-diversification-strategy/comment-page-1/#comment-3358 zigfred Fri, 24 Apr 2009 16:11:38 +0000 http://www.zdiaz.com/?p=1766#comment-3358 X: Yep, more articles on investments to come soon ! Stay tuned ! I have several investment articles already in my archives. X: Yep, more articles on investments to come soon ! Stay tuned ! I have several investment articles already in my archives.

]]> By: Obnoxious Queer http://www.zdiaz.com/2009/03/what-is-the-best-portfolio-diversification-strategy/comment-page-1/#comment-3353 Obnoxious Queer Fri, 24 Apr 2009 11:08:18 +0000 http://www.zdiaz.com/?p=1766#comment-3353 Sir Zig, Please update this post regularly. LOL. I'm into portfolio diversification. Just to start with 3 companies that I chose. As a newbie, so far, I think, I need to read more. Sir Zig,

Please update this post regularly. LOL.

I’m into portfolio diversification. Just to start with 3 companies that I chose. As a newbie, so far, I think, I need to read more.

]]> By: zigfred http://www.zdiaz.com/2009/03/what-is-the-best-portfolio-diversification-strategy/comment-page-1/#comment-3262 zigfred Thu, 16 Apr 2009 15:22:46 +0000 http://www.zdiaz.com/?p=1766#comment-3262 Xuzhu: I'll try reading your blog once in a while so we can compare notes. We could probably integrate our work sometime. :-) Xuzhu: I’ll try reading your blog once in a while so we can compare notes. We could probably integrate our work sometime. :-)

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