Earlier this Summer I wrote a few posts (here, here, and here) on "2iB." This is my handy mnemonic: integrity; intensity; BALANCE.
These are in the form of the three questions that a user of the 2iB mnemonic might ask herself or himself...
Read MoreIntensity follows Integrity. With Intensity, the popular American maxim of “go big or go home,” comes to mind. If something is worth doing, it is worth doing BIG. Warren Buffett, when prompted on the question of diversification in stock investing, said that for 98% of the people extreme diversification is the right way to invest. That means owning a mutual fund, or, even better the broadest possible global index of equities. Basically you want to own the world- if for example Venezuela turns out to be an investment dud, well, you got Ecuador. He went on to say that if you are ready to take ”an intensity” to it (stock investing), then one should take the opposite approach, i.e. only own a maximum of six or seven different shares, perhaps significantly fewer. In other words, do put all of your eggs in one basket- and guard that basket with your life.
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