CONCENTRATION VS DIVERSIFICATION – LESSONS FROM A FUND MANAGER WHO BLEW UP

CONCENTRATION VS DIVERSIFICATION – LESSONS FROM A FUND MANAGER WHO BLEW UP via The Asia Report I read a story on Kiplinger about a fund manager who closed up shop after fifteen years managing money due to his poor performance in the last two years. He pretty much sums up the problem with concentration: Magnifying the problem was my decision to put too much money into my favorite ideas. I totally bought into the notion that it was foolish to invest in my 60th-best idea. What I overlooked was how bad things could get if I was wrong about my second-best,…