- It is impossible to avoid all risks. I attempt to identify as many risks as possible and manage these risks by addressing them. All assets have embedded risks, whether we can identify them or not.
- Should one invest in growth or value? In examining eleven time periods, the average growth fund did better than the average value fund eight out of eleven periods.
- Examining the long-term performance of mutual funds and less-public portfolios, the better ones tend to be more concentrated. This is easy to understand - the wining positions get bigger and the losers get smaller or disappear.
For further details see:
Perspectives: Risk, Liquidity, Duration, + Concentration - Weekly Blog # 690