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1 Comment
Jacob
December 17, 2012Great stuff. Thanks Brian. I have, and have had, the Nightengale CD on this…….and think of it often. I think of the Bell Curve most often….relating to our expectations…….We EXPECT all car reeairmpn to be above average/or Retail Clerks/or Customer Service/or Waiters/and 50% are not. And I get a little frustrated when realizing that 20 of drivers….well you know/are driving up my insurance rates/Life Insurance/Health Insurance. I try to let my kids know about 80/20…..as in driving defensively. But thanks for driving this one home…..this and the impetus to go to the MP3 et.al…….. I “know it” but then comes the sometimes/but fun part of applying it. And I have been trying to apply it to long list of clients/potential clients that have caused a bit of “overwhelm”. Buffett teaches so well as do the books he references/that diversification is highly overrated/that effective diversification can come with 10 – 15, maybe 20 stocks. There is no evidence that funds with larger number of stocks generally outperform over the long run as some might surmise. Continued/Next