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Hi Charles. The 10% is a self-imposed limit that I learned the hard way. I overextended during the dot.com bubble and leading up to the financial crisis of 08-09. I got badly burned by investing to heavily in specific fund managers. Therefore, for the sake of my personal sanity, I limit my fund manager risk to no more than 10% of my portfolio.
I agree with you that a 4-5 fund portfolio is adequate for diversification. But it may not be adequate enough to diversify away manager risk, IMHO. Just look at Bill Miller, Ken Heebner, etc...
P.S. Charles, I greatly enjoying reading your comments. Your insights and analysis are spectacular. You are an asset to this forum.
top holdings - private account VGSTX vanguard star PRPFX permanent portfolio VPCCX vanguard prime cap core GLD gold/ LSBRX loomis bond PSPFX - us global resource
ANEFX : American Funds New Economy 16.1% ABALX : AMerican Funds Balanced 15.9% TWSMX : American Century Strategic Allocation 15.7% AHITX : American Funds High Income Trust 10.7%
Reply to @Sven: Very solid choices,Sven,but good Scandinavians like you? and me need a little NORW/ENOR in our portfolios.Bought both on weakness in the past two years,good choices for oil/oil service exposure.
Vanguard Health Care Fund = 7% Seafarer Growth and Income = 25% Fidelity Low Priced Stock = 34% Matthews Asia Dividend = 19% Fidelity Small Cap Value = 15%
Comments
Hi Charles. The 10% is a self-imposed limit that I learned the hard way. I overextended during the dot.com bubble and leading up to the financial crisis of 08-09. I got badly burned by investing to heavily in specific fund managers. Therefore, for the sake of my personal sanity, I limit my fund manager risk to no more than 10% of my portfolio.
I agree with you that a 4-5 fund portfolio is adequate for diversification. But it may not be adequate enough to diversify away manager risk, IMHO. Just look at Bill Miller, Ken Heebner, etc...
P.S. Charles, I greatly enjoying reading your comments. Your insights and analysis are spectacular. You are an asset to this forum.
Mike_E
VWINX 9% Vanguard Wellesley
OAKBX 14% Oakmark Equity & Income I
MACSX 12% Matthews Asian Growth & Income
HABDX 8% Harbor Bond
lifecycle fund 2040 @ 401K
top holdings - private account
VGSTX vanguard star
PRPFX permanent portfolio
VPCCX vanguard prime cap core
GLD gold/
LSBRX loomis bond
PSPFX - us global resource
DODFX
PTRRX
TPINX
ABALX : AMerican Funds Balanced 15.9%
TWSMX : American Century Strategic Allocation 15.7%
AHITX : American Funds High Income Trust 10.7%
FPACX FPA Crescent 9%
And tied for third place:
TFSMX TFS Market Neutral 8%
YAFFX Yacktman Focus 8%
ODVYX Oppenheimer Developing Markets 8%
Vanguard Health Care Fund = 7%
Seafarer Growth and Income = 25%
Fidelity Low Priced Stock = 34%
Matthews Asia Dividend = 19%
Fidelity Small Cap Value = 15%