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Are you Growing Your Investments Like A Bush or a Tree?
Comment section is as valuable as the article...maybe more.
This brings to mind Ashvin Chhabra's book The Aspirational Investor. He makes a similar suggestion. Divide into three buckets: safety, core, Aspirational.
Maybe your article should be read as career advice. Bushes get normal jobs and diversify investments. Sequoia's take real risk, almost never lose focus and if they make it, may achieve phenomenal growth. The least long lived career is a Pear tree trying to do both - work a job and launch a sequoia, ultimately doing neither particularly well.
(for most young investors) it is less risky to diversify when young, study and hone your investment skills, and then concentrate your assets later.
I would (suggest) a diversified portfolio of redwood, oak, pecan, and cherry trees than a portfolio of just redwoods. Further, I think an advisor might be able to show that investing in that portfolio will better provide for long term needs than investing in onions, blackberries, and daisies.
Yeah @Anna... Willows also have shallow, bumpy roots that are nasty on the lawn mower...and then there's the Catalpa with its overactive suckers and Pod production. Kinda like credit card offers.
“When George W. Bush took office on Jan. 20, 2001, the S&P 500 stock market index stood at $1,342.54. The day he left office, it was $805.22, a drop of 40 percent.”http://www.bushtoll.com/
Comments
“When George W. Bush took office on Jan. 20, 2001, the S&P 500 stock market index stood at $1,342.54. The day he left office, it was $805.22, a drop of 40 percent.” http://www.bushtoll.com/