SFYF - The Case For Valuation Diversification
- Traditional portfolio diversification has primarily focused on the number of holdings, sectors, large vs. small cap, etc.
- I consider diversifying via a large range of P/E valuations as a better way to capture CAGR but avoid significant drawdowns.
- Can I build a hypothetical portfolio of 50 popular stocks, with a broad distribution of valuations, and prove my thesis in the long run?
- Testing the historical performance of my portfolio vs. the benchmark and why this is not a validation of my thesis.
For further details see:
The Case For Valuation Diversification