You're not diversified if your comfortable with all your holdings

 

Source: Myles Conner

The late Peter Bernstein came up in a YouTube feed. He always had the ability to shock at the same time sounding sensible. In 2005 he spoke with Wealthtracker re disaster…the following is not  quite verbatim.

"You're not diversified if you are comfortable with all you holdings - you have to own something with which you are not comfortable."

"Suppose you make a big  bet on disaster as the outcome and you're wrong --- it could be very costly. But it has to be a part of the structure of your decision making.

This [2005] is a time where you have a kernel of equities that are based on an optimistic expectation - by and large most awful things don't happen - and then some investments on the outside that cover those extreme outcomes. But don’t make disaster the core of your investing. "

Today was odd… Indexes were up… big value stocks lost… Are too safe when better news from China [stimulant] creates a sudden RISK ON? It was a surprise to me. Have to admit I can see how Democrat's bent for regulation tees-off the big investors. Too bad.He adheres to widely held view..you have to anticipate what could go wrong, and how hard it would be to undo if the worst happened. Example, the market crashes. In the news: strikes at Boeing and Textron. Regulation and legal issues for Visa and Google.

https://www.google.com/books/edition/Against_the_Gods/G5TKA6B0pyEC?hl=en&gbpv=1&printsec=frontcover