As a quick note, we are on our way up to Wyoming today for a week of National Parks and hopefully some animal sightings in Grand Teton and Yellowstone. There will be blog posts on most, if not all, days and hopefully an interesting picture or two. On to Cuban;
By now you probably saw that Mark Cuban thinks portfolio diversification is a "crock of shit." Apparently he prefers to sit in cash most of the time and then go big into one or two things when there is chaos or perhaps some other obvious buying opportunity.
It wouldn't make sense to simply say he is wrong because chances are he has made this work for himself. This is what he believes is the best way to go. By the same token the person who buys and holds forever or the person sells on short term strength can make it work as can the person who sells on short term weakness. The deep value guy can make it work as can the momentum trader or the guy who is in and out of options constantly.
For every strategy you have ever heard of, there are people making it work. So then the issue must be not what is best and what is just plain stupid but what is best for you and what would be stupid for you.
Where people get in trouble is with sticking with a strategy that is wrong for them for what ever reason or where they do not understand the risk. A point I've made many times in the past is that all too often people fund out they own too much of a segment or an asset class after it goes down a lot.
The focus of my strategy is diversification, foreign exposure, thematic exposure, smoothing out the ride as much as possible and trying to capture a little more yield than the broad market. Anyone who hires us needs to be on board with that or they will be disappointed.
I say that not as a pitch but to stress the importance of figuring out the right way for you to invest. Allow myself to quote myself (a play on Austin Powers); take little bits of process from many places to create your own process. People spend a lot of time on "75 Stocks That Famous Hedgefund Manager Bought" or "Ten Funds for the Next 90 Years" when they would be doing themselves a huge favor figuring out their own best strategy.
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6 comments:
Pretty good pitch IMO.
My memory of names is poor and the animal may have migrated over the last few weeks. But I would go to the main lodge at grand Tetons. Only place I have ever seen moose.
Hayden valley in YS had grizzlies, elk, bison, wolves. Grizzlies and elk may be at higher elevation now.
If you go south from hayden valley and turn east at fishing bridge there were several grizzles out that way (first 1/3 to half of the way from fishing bridge to east end of park.
North from hayden valley is a pass that is another good spot for bears on your way to Lamar valley.
Lamar valley is good for bison, prong horns and possibly bears (but not close to the road)
NW corner of the park is good for elk.
Many animals are mostly nocturnal so the best time we share with them is early in the morning and very late in the day. Of course they can be found any time but it is less likely.
All of both parks are great and I have skipped the scenic areas which are easier to get info on.
SEG
As Yogi Berra surely once said, "He was right till he was wrong."
Admitted bias here (I'm a Hoosier, don't ask), but Cuban is genius. While the CNBC types wait breathlessly for the almighty Oracle of Omaha to speak and tell them it's ok to diversify (in all the same companies he buys), Cuban shoots his mouth off in a very calculated way. He is now a media darling and attracting headlines benefits him tremendously! Besides, he is kinda right on this...
Risk aside, if you as an investor/gambler want to score big, broadly diversified will not achieve the "score big" goal, period. However, if you are more interested in a less ambitious goal that is another story.
Expect to hear more from Cuban. He has struck a cord. He thinks the game is rigged and he is going to talk about it as long as it benefits him.
To be, this just is part of his overall rant against Wall Street. The benefits of diversification seem pretty obvious to me.
I also think the game is rigged. But, I also think Rogers approach with more foreign, not the crap of the week from wall street is a good plan for most.
SEG
the nonsense of looking for advice from people like Mr.Cuban should be obvious. It's like asking someone who won a lottery about the system he/she used?! Yet the public still loves to read about it!
Roger, we just returned from an 8 day "road trip" through Yellowstone and the The Grand Tetons.
If you have time, I would highly recommend the Beartooth Highway scenic drive. Hope you have a great time.
http://www.beartoothhighway.com/wildRoad/index.html
Jorge
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