ALB - My Top 8 Undervalued Stocks For February 2024 One Yields More Than 20%
2024-02-10 05:23:53 ET
Summary
- Diversification does not always decrease risk; adding more stocks to a portfolio may not eliminate market risk entirely.
- Occidental Petroleum, Unit Corporation, Hershey, Disney, Albertsons, PayPal, Rolls-Royce and Albemarle are among my top picks for the first half of 2024.
- The portfolio is not diversified amongst sectors but strictly chosen based on value.
How many picks to be diversified?
Two investors that I read and follow the philosophies of very closely are Joel Greenblatt and Charlie Munger. Both during their heyday's were very concentrated investors and pointed out that adding more stocks does not always decrease risk. Focusing on a handful of picks that are clearly valued and spread across different sectors could provide all the diversification you need:
My Top 8 Undervalued Stocks For February 2024, One Yields More Than 20%Two things should be remembered, after purchasing six or eight stocks in different industries , the benefit of adding even more stocks to your portfolio in an effort to decrease risk is small, and overall market risk will not be eliminated merely by adding more stocks to your portfolio.- Joel Greenblatt