PORTFOLIO UPDATE: ALMOST THERE
During the trading day, I tweeted the following:
I'm not a big believer in diversification. Never have been. In today's environment there are simplified choices (read: ETFs) that will allow you to replicate the passive nature of a diversified portfolio without having to deal with the headache of managing 10, 15 or 40 positions. Additionally, I feel that diversifying your portfolio dilutes your best ideas in favor of weaker positions that end up compromising performance in exchange for the FEELING of safety. If you have a comprehensive, well thought out and preferably systematic means of controlling risk there is no reason whatsoever to diversify away from your 6-7 best ideas. If your best ideas suck, that is a function of your research. Diversification, in that case, will only prolong the inevitable.
With that out of the way, I am near 95% invested spread out among 6 positions in the portfolio. I don't necessarily like to have more than 7 positions at once. This is perfect.
Portfolio consists of WMIH, SPNS, UPIP, PXLW, PRXI and PTGI.
