With 7 Trading Days In….

Now that the 2014 investing year is seven days old, I’m happy to report that our Buy List has a very, very, very tiny lead over the S&P 500.

Or to be more accurate, we’re down a smidgen less than they are. Through Friday, our Buy List has lost -0.29% compared with the S&P 500’s loss of -0.32%.

I do have a serious point here. I really don’t care about trading results over such a short time horizon. I believe we’ll do well over the long haul. But the important lesson here is that our Buy List is beating the market despite yesterday’s big plunge in Bed Bath & Beyond ($BBBY). That stock dropped more than 12% on Thursday.

That’s why having a well-diversified portfolio is so important. I specifically design our Buy List to be diversified so the overall portfolio is rather conservative. You’d be surprised how many investors think diversification means owning both Facebook AND Twitter. Think of portfolio diversity as a tool, not an obligation. It really does work.

Posted by on January 10th, 2014 at 4:42 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.