2019年5月3日星期五

Invest in Optimism: A Conversation with Keith Fitz-Gerald: Part II

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May 3, 2019

Invest in Optimism: A Conversation with Keith Fitz-Gerald: Part II

Editor's Note: Hi there! As mentioned on Wednesday, last week, Keith sat down for an exclusive interview with Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors. Below is part two of the interview. The original text of which first appeared on U.S. Global Investors on April 24, 2019, which you can view by clicking here.

Dear Total Wealth Reader,

Frank Holmes: You're known for the 50-40-10 portfolio, among other things. Describe that for us.

KFG: Thanks for pointing that out. Let me start by saying that conventional thinking about diversification is, I believe, badly flawed. The theory is a lot like throwing spaghetti against a wall and seeing what sticks. The proposition is that you have lots of great stocks that don't go up and down at the same time, but the reality is that it's more like rearranging the deck chairs on the Titanic in today's highly computerized markets, when correlation is higher than it's been at any point in financial history.

If you want to get ahead and diversify your portfolio, the irony is that you don't spread it all over. You don't, for example, see buildings named after "diversifiers," but you do see 'em named after people who have made a boatload by taking well-reasoned, calculated risks.

If you can do that, the returns-the giant profits, really-will come.


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Invest in Optimism: A Conversation with Keith Fitz-Gerald

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