Originally Posted by
RTM
One thing that this reporting season has again highlighted to me for is the importance of a well diversified portfolio. Yes, one might miss out on the “highs” of an overweighted position in ATM on the valuation of your portfolio, but...it’s nice to have a steady stream of dividends coming in, many of which are increasing year to year. Like Percy I am relying on my market investments to provide dividends for our living expenses. So when a single stock like Turner’s goes South, it really is only affecting 5%, oops...now 4% of my capital. And as long as the dividend is maintained....well, do I really care that much as long as they stay in business ? (the answer is yes, I hate it) Most of of my portfolio positions are in the 3-6 % range, with a few a wee bit higher...but not more than 10%. Yes, I hear some of you say, diworsification at its best....but when something heads south...well, it sure eases the pain.