Investment — Putting a Portfolio Together - Disciplined Alternative Strategy
If you had put all your money into Nasdaq stocks in March 2000, you would have had 21.6% of it by October 2002. You would have 46.3% of it now.
The moral is simple and obvious: don’t put all your eggs in one basket. Everyone knows that. But I can assure you that going into 2000, an alarming number of people wanted their eggs in that one basket—the basket with the best recent returns. And despite the evidence of the following months, faith was retained in that basket until just about eight out of ten eggs were broken. It was an emotional time. ...
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