Michael LeBoeuf Quotes

Diversification is an established tenet of conservative investment.

Even with a margin of safety in the investor's favor, an individual security may work out badly. For the margin guarantees only that he has a better chance for profit than for loss - not that loss is impossible. But as the number of such commitments is increased the more certain does it become that the aggregate of the profits will exceed the aggregate of the losses.

I seek individual investments that will allow me to target total portfolio returns of at least 20% annually after fees and expenses on an annual basis over a period of years, not months.

Even defensive portfolios should be changed from time to time, especially if the securities purchased have an apparently excessive advance and can be replaced by issues much more reasonable priced.

The most striking thing about Graham's discussion of how to allocate your assets between stocks and bonds is that he never mentions the word "age".

Diversification is protection against ignorance. It makes little sense if you know what you are doing.

Diversification is something that stock brokers came up with to protect themselves, so they wouldn't get sued for making bad investment choices for clients. Henry Ford never diversified, Bill Gates didn't diversify. The way to get rich is to put your eggs in one basket, but watch that basket very carefully. And make sure you have the right basket.

There is a close logical connection between the concept of a safety margin and the principle of diversification.

Risk can be greatly reduced by concentrating on only a few holdings.

The optimum portfolio depends on the various expectations of choices available and the degree of variance in performance which is tolerable. The greater the number of selections, the less will be the average year-to-year variation in actual versus expected results. Also, the lower will be the expected results, assuming different choices have different expectations of performance.

If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks.

Always keep your portfolio and your risk at your own individual comfortable sleeping point.

We don't manage money for anyone else. We bear responsibility only for our own risks.

There's a tendency to look at investments in isolation. Investors focus on the risk of individual securities.

I'm not a money manager, but I can tell you what the conventional wisdom is. The younger you are, the more risk you can take on.

I have a million dollars in the stock market, because if I lose a million dollars, I don't personally care.

Portfolio theory, as used by most financial planners, recommends that you diversify with a balance of stocks and bonds and cash that's suitable to your risk tolerance.

The last thing you want to do, unless it's a very unusual situation, is to invest money.

The beauty of diversification is it's about as close as you can get to a free lunch in investing.

Investing is a business where you can look very silly for a long period of time before you are proven right.

I have no complaints about losing money I put in high-risk investments. I did some of that when I had real money; my informed choice, my measured gamble.

Having different types of stocks in your portfolio can enhance returns.

My view is that one should diversify broadly across different fund investments. However, it's tough for investors to try to pick the appropriate risk level that they should manage their funds at. Having a personal adviser would be helpful.

What I invest in, while not risky for me, may be too risky for most people.

Because in the New Normal you are more worried about the return of your capital, not return on your capital.