Comments on: Asset Allocation is Not Enough for Portfolio Risk Management http://www.dividendtree.net/investment-process/asset-allocation-is-not-enough-for-portfolio-risk-management/ My journey of planting dividend investment seeds and watching it grow.... Thu, 09 Sep 2010 08:07:32 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Dividend Tree http://www.dividendtree.net/investment-process/asset-allocation-is-not-enough-for-portfolio-risk-management/comment-page-1/#comment-24 Dividend Tree Thu, 15 Jan 2009 15:52:00 +0000 http://www.dividendtree.net/?p=26#comment-24 JJ:<br/>My discussion was w.r.t. concentration based on capital allocation (not necessarily number of companies). We need to be little careful in looking at what guru’s have done or can do, because the access to resources, capital availability, vehicles etc… are very different. <br/><br/>For individual investors based on risk profile, availability of resources, and investing vehicles, I still believe in prudent asset allocation but along with by quality (not as standalone tool). Both go together. <br/><br/>If investor’s risk profile allows it, then there is nothing wrong in holding only 10 companies at a given time. JJ:
My discussion was w.r.t. concentration based on capital allocation (not necessarily number of companies). We need to be little careful in looking at what guru’s have done or can do, because the access to resources, capital availability, vehicles etc… are very different.

For individual investors based on risk profile, availability of resources, and investing vehicles, I still believe in prudent asset allocation but along with by quality (not as standalone tool). Both go together.

If investor’s risk profile allows it, then there is nothing wrong in holding only 10 companies at a given time.

]]> By: Jae Jun http://www.dividendtree.net/investment-process/asset-allocation-is-not-enough-for-portfolio-risk-management/comment-page-1/#comment-23 Jae Jun Thu, 15 Jan 2009 08:01:00 +0000 http://www.dividendtree.net/?p=26#comment-23 Lynch was known to own thousands of companies lol. He certainly didn't seem to care about asset allocation because if it looked good and cheap to him, he got it.<br/><br/>Same thing with all the other guru's. They aren't afraid to invest a significant portion of their portfolio on just one stock if they feel the odds are truly in their favor.<br/><br/>I too invest according to what I believe are my best ideas. I've never held more than 10 companies at any one time and it doesn't bother me one bit. Lynch was known to own thousands of companies lol. He certainly didn’t seem to care about asset allocation because if it looked good and cheap to him, he got it.

Same thing with all the other guru’s. They aren’t afraid to invest a significant portion of their portfolio on just one stock if they feel the odds are truly in their favor.

I too invest according to what I believe are my best ideas. I’ve never held more than 10 companies at any one time and it doesn’t bother me one bit.

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