JMJeffrey (71.59)

Diversification at Work

September 17, 2009 – Comments (0) | RELATED TICKERS: IFC , ACAS

Living in Malaysia with a twelve hour time difference does not afford one the luxury of watching their stock picks wiggle all morning and afternoon (this is good).  But when I checked in quickly before going to bed I got a taste of diversification at work. 

You see I own two stocks, IFC and ACAS, and they were two of the biggest movers yesterday..but in opposite directions.  ACAS shot up based on some good news of a portfolio sale.  And IFC, well, let's just say they're not doing so good. But in the end they both pretty much balanced themselves out.

Now it does not always work that way, but if you are pretty much a novice at this like me then diversification across sectors and company sizes is probably a good idea.  Can you be over-diversified?  Yep and I probably am at the moment if you look at my CAPS which is a pretty much a mirror image of my portfolio.  But I'd rather have a little more diversification working for me than a little less.