On Diversification

I’ve been all over the map on diversification. Initially, I was in mutual funds and tracking stocks. In downward spirals, they all gravitated lower. Breadth in a bear market was a guaranteed way to lose money. It seems like individual equities are the only thing that escaped the downdrafts.

Lately, I have been playing for quick pops – looking for a big move in 48-72 hours, usually around earnings or extraordinary events. When I find one that looks promising, I go big and try to maximize the profit generated.

The guys that send the checks from my employer to my 401K account have noticed the same trend in my investing. They are none too keen on my style, but they can’t knock my results.