De-worse-ification Securities offered through LPL Financial. Member FINRA/SIPC.

Slides:

Advertisements

Similar presentations

Saving and Investing Tools Carl Johnson Financial Literacy Jenks High School.

Advertisements

AI-36904© 2013 American Funds Distributors, Inc. Figures are past results and are not predictive of results in future periods. Investments are not FDIC-insured,

Investment Basics A Guide to Your Investment Options Brian Doughney, CFP® Wealth Management Senior Manager.

Bonds Add in bond interest ex from book. Bonds Unit 7 - Investing.

Investment and Financial Services: What Every Financial Educator Should Know.

An Introduction to Investing Fin 302 Spring 2008 James Dow.

Let’s talk about you What is a target date fund?

Track Record Weyland Capital Management employs a tax-sensitive, globally-diversified investment approach. The firm’s “all-weather” investment approach.

The McGraw-Hill Companies, Inc., 2000

Risk and Return – Introduction Chapter 9 For 9.220,

September 28 th, What Is Investing? Investing - The art of committing money or capital to future endeavors with expectation to obtain additional.

Chapters 9 & 10 – MBA504 Risk and Returns Return Basics –Holding-Period Returns –Return Statistics Risk Statistics Return and Risk for Individual Securities.

Copyright ©2005 Ibbotson Associates, Inc. Stocks and Bonds Securities offered through Lincoln Financial Advisors Corp., a broker/dealer, 1300 S. Clinton.

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Some Lessons From Capital Market History Chapter Twelve.

Copyright © 2006 McGraw Hill Ryerson Limited10-1 prepared by: Sujata Madan McGill University Fundamentals of Corporate Finance Third Canadian Edition.

Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

1 Chapter 09 Characterizing Risk and Return McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Risk and Return – Introduction For 9.220, Term 1, 2002/03 02_Lecture12.ppt Student Version.

Portfolio Risk and Performance Analysis Essentials of Corporate Finance Chapter 11 Materials Created by Glenn Snyder – San Francisco State University.

Asset Allocation and the Efficient Frontier: Optimizing a portfolio’s risk/return profile J.P. Morgan Investment Academy SM FOR INSTITUTIONAL USE ONLY.

TM. Step 1 Selecting your Benchmark Asset Allocation Step 1 Selecting your Benchmark Asset Allocation.

Risk Management presentation Managing Risk. The use of asset allocation does not guarantee returns or insulate you from potential losses. Dollar cost.

Copyright ©2004 Pearson Education, Inc. All rights reserved. Chapter 18 Asset Allocation.

Prepared by George Oviedo 320 Palisade Avenue Bogota, NJ Tel: Fax:

 Introduction to Risk, Return, and the Opportunity Cost of Capital Principles of Corporate Finance Brealey and Myers Sixth Edition Slides by Matthew Will.

THREE WAYS TO BUY A STOCK. THREE WAYS TO BUY A STOCK Options involve risk and are not suitable for all investors. For more information, please read the.

CHAPTER SIXTEEN MANAGING THE EQUITY PORTFOLIO © 2001 South-Western College Publishing.

September 18, Portfolio Strategy In a Rising Interest Rate Environment.

1-1 1 A Brief History of Risk and Return. 1-2 A Brief History of Risk and Return Two key observations: 1. There is a substantial reward, on average, for.

Capital Markets 1 Risk and Return: Historical Perspective Historical Returns Market Efficiency.

Chapter McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. A Brief History of Risk and Return 1.

457 Retirement Education for LIFE ® Is Your Retirement Rockin’ or Rollin’?

Portfolio Management Lecture: 26 Course Code: MBF702.

Investment Models Securities and Investments. Why Use Investment Models? All investors expect to earn money on their investments. All investors wish they.

ETF Trading Strategy Bigfoot, Whiddon Wealth Management, LLC and LPL Financial are separate unaffiliated entities. Whiddon Wealth Management, LLC 2410.

Copyright T. Rowe Price. All Rights Reserved. T. Rowe Price Retirement Funds Date Copyright T. Rowe Price. All Rights Reserved.

Investment and portfolio management MGT 531. Investment and portfolio management  MGT 531.

CHAPTER 8 Risk and Rates of Return

AKD Index Tracker Fund AKD Investment Management Limited.

Introduction to risk, return, and the opportunity

Chapter 10 Capital Markets and the Pricing of Risk.

Chapter 10 Capital Markets and the Pricing of Risk

11-1 Lecture 11 Introduction to Risk, Return, and the Opportunity Cost of Capital.

Seminar: Timely Topics for Today’s Business World Mr. Bernstein Risk January 2015.

Your “On the Road to Advanced Investing” booklet A pencil.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Copyright ©2005 Ibbotson Associates, Inc. Principles of Investing Securities offered through Lincoln Financial Advisors Corp., a broker/dealer, 1300 S.

Kevin M. Wilson, PhD Chairman/CEO 1405 Medical Arts Building 324 W. Superior Street Duluth, MN Office: Toll Free: Fax:

PERSONAL FINANCE Diversification. Objectives Students will be able to know:  The importance of diversification  Research investments online and with.

Last Study Topics 75 Years of Capital Market History Measuring Risk

Lecture 7 Introduction to Risk, Return, and the Opportunity Cost of Capital Managerial Finance FINA 6335 Ronald F. Singer.

Strategies.  Theory ◦ Portfolio Management ◦ Risk Management  Market neutral ◦ Long short ◦ beta ◦ Alpha investors ◦ Smart beta  Different way to order.

Member FINRA/SIPC LPL FINANCIAL RESEARCH Putting Current Markets Into Perspective: Why to Stay Invested The economic forecasts set forth in the presentation.

For Internal Use Only / Not for Distribution to the Public Not FDIC Insured | May Lose Value | No Bank Guarantee.

Presenter Name Title MFS Investment Management ® Keep more of what you earn Tax-efficient MFS municipal bond funds © 2009 MFS Investment Management.

STRIKING A BALANCE How balanced funds may help investors to stay the course toward achieving their long-term goals Name Title Firm The views expressed.

Presented by StanCorp Equities, Inc., member FINRA

Investment Models Securities and Investments.

Expected Return and Variance

Presented by StanCorp Equities, Inc., member FINRA

Chapter 11 Learning Objectives

De-worse-ification.

(Insert Company Name Here)

Introduction to Risk, Return, and the Opportunity Cost of Capital

(Insert Company Name Here)

The McGraw-Hill Companies, Inc., 2000

(Insert Company Name Here)

(Insert Company Name Here)

Introduction to Risk & Return

Presentation transcript:

De-worse-ification Securities offered through LPL Financial. Member FINRA/SIPC

How Does the Smart Money Look at Diversification? Many Believe Broad Diversification Creates Safety

“De-worse-ification: to describe an investment approach where people spread themselves too thin and do not concentrate on the best opportunities available.” Flaws In Broad Diversification - Peter Lynch- Research Consultant and acclaimed Fidelity Investments Magellan Fund manager from

“If you can buy more of your best idea, why put [the money] into your 10 th best idea or 20 th best idea?... The more positions you have, the more average you are.” Flaws In Broad Diversification - Bruce Berkowitz Founder and Managing Member of Fairholme Capital Management and a Director of Fairholme Funds, Inc.

“Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing… Wide diversification is only required when investors do not understand what they are doing.” “The Best” Investor View -Warren Buffet Chief Executive of Berkshire Hathaway (1966 annual report) General risks inherent to investments in stocks include the fluctuation of market prices, loss of principal, market price at sell may be more or less than initial cost.

"Do you really like a particular stock? Put 10% or so of your portfolio on it. Make the idea count … Good [investment] ideas should not be diversified away into meaningless oblivion." “The Best” Investor View -William H. Gross “Bill Gross On Investing” (1998) General risks inherent to investments in stocks include the fluctuation of market prices, loss of principal, market price at sell may be more or less than initial cost.

“You’ll need at least a dozen carefully selected individual stocks to be truly diversified.” - Beginner’s Guide to Asset Allocation, Diversification, and Rebalancing ( Other Views of Diversification

“The Wall Street Journal reports that the average stock fund has 172 holdings. What is the point of having that many holdings?” Too Many Holdings? Source: How Many Stocks is too many? Diversification, John Reese, The Guru Investor, Validea, August 19, 2009

Definition of 'Standard Deviation' 1. A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance. 2. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. Read more: YuAVlIn YuAVlIn Source: Investopedia, 2012 What is Standard Deviation?

What’s the right number? Source: How Many Stocks is too many? Diversification, John Reese, The Guru Investor, Validea, August 19, 2009

No strategy can guarantee profit or protect against a loss. Past performance is not indicative of future results. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Stock investing involves risk including loss of principal. The opinions in this material are for general information only and are not intended to provide specific advice of recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.