ATM - A2 Milk Corporation Limited

[winner69]

Do any of you guys calculate the ‘efficient frontier’ to optimise your portfolio to get the maximum return obtainable for your acceptable risk

Or is just seat of the pants stuff or just gut feel and then hope like hell it’ll all be OK

[mfd]

Diversification per se is ones worst enemy ......most of the richest people in the world are not ‘diversified’

Depends on your goals and requirements, surely? If nearing retirement or mostly aiming to maintain wealth then diversifying would help, if you're younger and willing to take a risk to strike it big then maybe not.

[Beagle]

Do any of you guys calculate the ‘efficient frontier’ to optimise your portfolio to get the maximum return obtainable for your acceptable risk

Or is just seat of the pants stuff or just gut feel and then hope like hell it’ll all be OK

Doubt many have even heard of the efficient frontier or understand the efficient market hypothesis and risk adjusted optimum portfolio allocation mate.
I use gut feel and I have learned from past experience never to be so sure of the future as to place too big a bet on any particular company. Sure some of the wealthiest investors in the world got rich by having a very concentrated investment approach and you can read all about them but the funny thing is you never hear of the millions who took an aggressive approach to investment and lost their shirt do you ?

Some people can afford to take big risks, (some even thrive on the adrenalin rush of it), and can live with the outcome of a potential major loss to their portfolio either because they have more than they need already or because they have sufficient time to recover their portfolio before retirement...for the rest of us I think a more balanced approach makes more common sense.

Each to their own though and good luck to all holders large and small.

[steveb]

I wonder if people approaching retirement don't worry to much about recovering losses before they retire,as they have kiwisaver to fall back on.

[BlackPeter]

Diversification per se is ones worst enemy ......most of the richest people in the world are not ‘diversified’

And so are all of its poorest people

[macduffy]

I wonder if people approaching retirement don't worry to much about recovering losses before they retire,as they have kiwisaver to fall back on.

I doubt that Kiwisaver has been around long enough to offer a lot to fall back on. NZ Super would pay a few bills but not much beyond the basics.

Moral of the story: Don't lose capital!

[Ted2]

Diversification per se is ones worst enemy ......most of the richest people in the world are not ‘diversified’

Yep I reckon diversification is just averaging down your return. And don't quote Warren Buffett - he only diversifies into good stocks!!

[tipsy]

If only I'd been all in on A2, would've been a nice, early retirement.

[couta1]

If only I'd been all in on A2, would've been a nice, early retirement.

Yep, just like XRO, which is back trading at around $40 NZ, think of all the balsy people who bought that at around $1 and held.

[Valuegrowth]

I have found that even fund managers, great traders and intelligent investors make big mistakes and losses. Either they sell too early and buy too late. They also choose wrong type of investment or trading. There are investors they sell stocks with frustration after keeping for a long time. Then they miss the biggest gain in their investment. Too much trading also could lead to poor results. Putting all eggs in one basket is very risky. Exception is we find a multibagger company. Successful investors have succeeded by putting their money in investment that they knew supremely well.