Diversification

Wealth is made through concentrated investments. Wealth is preserved through a diversification of investments. But here starts the real challenge. As people grow older they get far more conservative with their investments. Additionally these investors are swayed by politics to the point they can't see the light of day.

The point is to avoid money managers that are too old or too young and influenced by the politics of the day. The markets are bigger than the Oval office. When people are most upset they are usually the most wrong with their decisions...that is why you always wait a day before over acting...but with investments or even running a business this can be deadly to performance...we see this daily...

Examples would be the young hedge fund manager who blew up today with concentrated leveraged bets in the nat gas sector...and the older money manger in Barron's complaining about the failed USA policies or the big hedge fund manager complaining in WSJ Saturday edition..that there are no more good investments to be found!

The next spectacular crash for some will be the private equity. Stay away from this too...just when the USA stock market is about to make all time highs everyone will be trying to get their money out of these hedge funds and private equity and can't!

People complain about a career veteran running a $50 billion dollar company and their compensation....but just wait till they see how over paid their money managers are!!! Then they'll really scream.

Barkly seen here is enjoying the most beautiful evening sunset of the year...the autumn in Minnesota has been spectaclular.