Dec 04 2008
Creme List Portfolio
In the following “movie” one finds a portfolio made up of “Creme List” stocks. Of the stocks I track, these fifteen companies are at the top of the list as of 12/3/08. Most of these stock have a low correlation with the S&P 500 and that is part of the reason why the diversification metric exceeds 40%.
In the Stein – DeMuth book, “Yes, You Can Supercharge Your Portfolio!“ is a discussion of using individual stocks to increase return while reducing risk. Nevertheless, Stein & DeMuth highly recommend the core of the portfolio contain index investments. That is the whole concept behind what I call the Mosaic Portfolio approach. In the larger portfolios tracked over on the Premium side of this blog, stocks are used to supplement the basic index or core holdings of the portfolio.
Lowell Herr
Photograph: Budapest, Hungary
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