Author Topic: Do you prefer investing extremes or the mean?  (Read 11904 times)

tjh

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Do you prefer investing extremes or the mean?
« on: February 14, 2012, 06:57:03 PM »
My preference is the extreme.  I like the 3 sigma either way on a bell curve of investing risk.  On one side, it is AAA government bonds and blue chip common / preferred stocks and bonds and on the other is seed startups, Iceland, Greek, or other high risk of default, investments.

What are the advantages and disadvantages to investing at the extremes, and is a macroeconomic trend the biggest risk when investing at the extreme?  For example, is a global economic recession or depression the greatest risk if I am in risky assets?
« Last Edit: February 14, 2012, 06:59:09 PM by tjh »

jss027

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Re: Do you prefer investing extremes or the mean?
« Reply #1 on: February 14, 2012, 07:20:29 PM »
Over the last 15 years...I always preferred the small cap stock for growth, and thinking the large caps have already ran their course.  Although I've hit some homeruns (NFLX at $9) (ATVI @ $3 prior to multiple 2 for 1 and 2 for 3 splits) etc...the end result was spinning my wheels.  After years of experience...I prefer to build/maintain my wealth in dividend champions stocks for dividend income (match and compounding with drip) with the bulk of my money...and only allocate no more than 5% of portfolio for those unproven risky investments.

Hope this helps