Faber: Stay Diversified

Marc Faber of the Gloom, Boom & Doom Report thinks it will be very hard for stocks to eclipse their 2011 highs anytime soon, but he says he still would favor stocks over Treasury bonds. Overall, Faber says in an interview with Bloomberg, investors who have a long-term time horizon should stay diversified, owning some bonds, some cash, some gold, some equities, and some real estate. [youtube=http://www.youtube.com/watch?v=KMSW_VxvwhU]  

Are Concentrated Funds More Volatile? Maybe Not

How many stocks is enough for your portfolio? We examined that question a little while back, and now new evidence supports the idea that “enough” might be a lower number than most people think. The data comes from Morningstar Inc., which was recently asked by The Wall Street Journal to look into the issue of diversification — specifically at how concentrated funds of 40 or fewer holdings fared in terms of performance and volatility compared… Read More

How Many Stocks Is Too Many?

One of the key questions any investor must grapple with is, “How many stocks should I own?” Jonathan Burton addresses that issue in a recent MarketWatch column, taking a look at focused funds — those that hold relatively few stocks compared to most other mutual funds. “Focused funds — portfolios with only a couple of dozen holdings — are getting attention in a market where stock selection is more important than ever,” Burton writes. He… Read More

Portfolio Size: How Big Is Big Enough?

How many stocks should you own? Rob Wherry of SmartMoney.com takes an interesting look at that question today on The Wall Street Journal’s web site. Wherry examines “focused funds” (those that own fewer than 50 stocks), narrowing the list down to 18 that meet performance, fee, sales load, and manager experience requirements. Among the funds with the best five-year track records: CGM Focus (3.9% average annual return) and Forester Value (3.5% annual return), run by… Read More