We’ve all heard the cliche that “shutting the barn door after the horse has bolted” means one is late to action after the damage is done. Yes, it’s human nature not to dwell on negatives when the stock market ride since March, 2009 has been so exhilarating. Consider these returns;
When is the last time someone offered to give you a couple hundred hours of “time”? We are here to do precisely that! You’ve all heard the cliche that “even the richest man has only the same 24 hours in a day as the poorest man.” Regardless of what kind of investor you might be, we guarantee two things:
1. To be the very best investor you can be, you need to carefully assemble a portfolio of ChartLists to facilitate your asset allocation, money management, market analysis, routines, stalking, buying, monitoring and selling disciplines.
Picture this: I am at a cocktail party chatting with three people about investing. The first person says, “I could be a really successful investor if only I could emotionally tolerate a bit more risk.” The second person claims, “I could be a world-class investor too if I had access to the same information as big institutional investors.” The third person believes that his market timing model is the last missing element holding him back from consistent profitability. I have known all three of these part-time investors for well over a decade. I’ll try to be gentle just in case any of them read this blog. If they do, label it “tough love”.
Imagine a football coach who has the best eleven quarterbacks in the NFL altogether on the same team and puts them on field at the same time. This “dream team” would get clobbered. Without tight ends, tackles, guards, wide receivers and a center there to present a balanced attack, there would be no hope of victory. So why do so many investors build a team of assets that does precisely the equivalent of a team with 11 quarterbacks? With this sports analogy and some further elaboration, I’ll prove to you the importance of diversification and strategic correlations.