Lesson in Diversification

The final numbers are in and our Buy List lost -1.79% today, just two basis points worse than the S&P 500.

That’s pretty good considering the anchor of Broadridge (BR), which fell about 8% today.

All told, BR was a 26-basis-point weight on the Buy List today. Thanks to having many other good stocks, we absorbed the bad day from BR rather smoothly.

Mind you, I’m not happy with losing to the market today but as investors we understand that in a 25-stock portfolio, some stock is going to be the dud.

A well-diversified portfolio can be a big help when one of your stocks falls afoul of Wall Street’s judgement.

Posted by on January 31st, 2020 at 4:35 pm


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