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October 06, 2008


Chris Ward

With 'random' diversification (of your portfolio), you tend to end up competing against yourself; or lending to an institution who then ends up lending back to you (and I think you can assume the institution will take a commission on the turn. They are businesses, after all).

So it may be better to 'take a position' with a personal investment portfolio.

How to do it safely and productively, accepting the level of risk you are comfortable with, and with confidence in your counterparty ?

Gold may be safe; but you cannot eat it, and it does not pay a dividend.

Penelope Non

What I find unacceptable is diversification based on hope rather than a solid reason). http://business.blogtells.com/2008/10/06/resolution-is-non-rational/

Armen Hovanessian

This sounds like you are claiming that spliting a big company into smaller parts does NOT make sense EVER! Is that the intention?

Chris Ward

It's probably that a big company won't want to be split up. I think IBM likes being an integrated hardware-software-services business; I think Microsoft likes being a Windows-and-Office business; and I think America has no interest in splitting into Confederates and Yankees at the Mason-Dixon Line.

Now, whether it ever has to split, like ATT into the Baby Bells, is another matter entirely.

But by choice it won't want to.


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