What Experts Say About "Asset-Allocation & Diversification"

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Taylor Larimore
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What Experts Say About "Asset-Allocation & Diversification"

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"The stock market will fluctuate, but you can't pinpoint when it will tumble or shoot up. If you have allocated your assets properly and have sufficient emergency money, you shouldn't need to worry." (AAII Guide to Mutual Funds)

"The impact of asset allocation or investment policy swamps the other (investment) decisions." The Informed Investor by Frank Armstrong

"Manage all of your financial assets--retirement accounts, taxable account, kids' college money, emergency money, etc.--as a single portfolio." Bill Bernstein, author of Four Pillars of Investment

"Asset allocation is critically important; but cost is critically important, too -- All other factors pale into insignificance." "Better diversification is the last refuge of the scoundrel." "Choose a balance of stocks and bonds according to your unique circumstances--your investment objective, your time horizon, your level of comfort with risk, and your financial resources." Absolutely no one knows what the stock market is going to do tomorrow, let alone next year. Nor which sector, style or region will lead and which will lag. Given this absolute uncertainty, the most logical strategy is to invest as broadly as possible." Jack Bogle

"Your most important portfolio decision can be summed up in just two words: Asset Allocation." The Bogleheads' Guide to Investing by Lindauer, Larimore & LeBoeuf

"The first step in assembling an investment portfolio is to decide how to spread your dollars among stock, bond, and cash investments. Spend a lot of time on this decision--it is the most important one you will make." Straight Talk on Investing by Jack Brennan

"Asset allocation will never garner headlines, but it is by far the most important portfolio decision you will make.-- Diversification is about accepting good enough while missing out on great but avoiding terrible." A Wealth of Common Sense by Ben Carlson

"If your stock portfolio looks very different from the broad stock market, you're assuming additional risk that may, or may not, pay off." What Works and What Doesn't by Andrew Clarke

"Forget Wall Street's exotic garbage. Instead, stick with stock, bond, and money market funds." You've Lost It. Now What? by Jonathan Clements.

"Keep it simple, very simple. Lazy investing works." Lazy Person's Guide to Investing by Paul Farrell

"Early savers need only two or three no-load mutual funds to fill an investment portfolio. Start with a total U.S. stock market index fund and add a total bond market index fund." Protecting Your Wealth by Rick Ferri

"Asset allocation and diversification are the foundation stones of successful long-term investing." Asset Allocation by Roger Gibson

"Sit down and draft an asset allocation plan. If you don't know how much of your total net worth is allocated to each asset class and why, then you're making about the worst mistake in investing." The Great Mutual Fund Trap by Ginsler and Baer

"Development of a long-term investment plan constitutes the most important single investment decison that you are likely to make." Index Your Way to Investment Success by Good and Hermansen

"The investor may vary his holding of common stocks between the 25% minimum and the 75% maximum." The Intelligent Investor by Graham & Zweig

"If at least one of your assets isn't underperforming, you aren't diversified." Paul Keck, author of Roadmap for Investing Success

"Many studies have concluded that the major determinant (90%) of the overall rate of return earned by investors is not the particular bond or stock funds they buy, but rather the way they allocate their investment funds among the various asset classes." Random Walk Guide by professor Burton Malkiel

"Your portfolio mix of asset classes will be far more important in determining its performance than will be your selection of individual securities or mutual funds." Outperforming the Market by John Merrill

"Correlation is the key and secret to diversification's success." The Probability of Fortune by Moshe Milevsky

"People don't pay a lot of attention to asset allocation, but it's the key decision that determines your investment success, now how smart (or dumb) you are at picking stocks or mutual funds." Making the Most of Your Money by Jane Bryant Quinn

"Diversification is the cardinal rule of investing and the one most often violated." The Unbeatable Market by Ron Ross

"The most important factor when diversifying is to adhere to your asset allocation strategy, because when you stick to your strategy and rebalance your assets at year-end, buy and sell decisions are no longer arbitrary." The Coffeehouse Investor by Bill Schultheis

"Choose your asset allocation model carefully. Asset allocation is the biggest factor in determining your overall return." Charles Schwab's Guide to Financial Independence

"Experts agree that having the right investment plan and doing your asset allocation right are crucial to your investment success." The Only Proven Road to Investment Success by Chandan Sengupta

"It can be shown that maximum diversification is achieved by the each stock in proportion to its value to the entire market." Professor and author, Jeremy J. Siegel

"Diversification is not determined by the number of securities held." Rational Investing by Larry Swedroe

"Investment success depends on asset allocation, diversification, and risk management, not on complexity." Winning With Index Funds by Tweddell and Pierce

"Investing in only a slice of the market, instead of the entire market, lowers our diversification and raises our risk." Jason Zweig, author and Wall Street Journal columnist.
What Experts Say About Other Important Topics

Best wishes.
Taylor
Last edited by Taylor Larimore on Wed Jan 20, 2021 12:25 pm, edited 10 times in total.
"Simplicity is the master key to financial success." -- Jack Bogle
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Trevor
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Re: What Experts Say About "Asset-Allocation & Diversificati

Post by Trevor »

Another great post, thanks Taylor :D
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Re: What Experts Say About "Asset-Allocation & Diversificati

Post by LadyGeek »

This thread is a 1 of 10 birthday presents from Taylor Larimore: What Experts Say [about various investing topics]
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fortyofforty
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Re: What Experts Say About "Asset-Allocation & Diversificati

Post by fortyofforty »

Thanks for steering us back towards common sense, Taylor. You cannot ignore the wisdom and logic that comes from these experts.
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