Investment Adages That Don't Make Sense
Yet they will not become extinct.
Some of these sayings initially struck me as insightful, while others never did. Either way, here are four investment bromides that can safely be ignored.
1. You’re too diversified.
This criticism is omnivorous, applying across the investment food chain. It is levied at mammoth pension funds that hire hundreds of subadvisors, as well individuals who have investments strewn across multiple brokers. Were there any retail mutual fund of funds still in business (they were once fashionable), the reprimand would be directed at them. I should know; I once routinely wrote such comments.