Interesting snippets from a post on Motley Fool:
I think it would behoove anyone thinking of making a farm bet, especially perhaps when the investment is another financial company, to take a read of those two company boards here on TMF (I think there may have been some sharp exchanges on The Value Board too but my memory is diminishing with age) and just make sure that you have good responses in this particular instance to what were, I think, reasonable objections raised about the general approach at that time.
Diversification can go too far, but I think the same is undoubtedly true of concentration. If there aren’t enough value opportunities around to create an adequately diversified portfolio, I tend to take that as a sign that the market may be trying to tell the value investor something.
In my experience, if one waits, those opportunities will eventually turn up. The waiting can be frustrating, but not as frustrating as not having enough capital to invest in great value propositions because one has lost it previously when trying to chase performance.
Markets taking a dive again, I see. The strong bounce yesterday sure didn’t last long. Motley Fool reports "Now Is The Time To Buy On The Dips".
Take care out there, folks.
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