Thread: Investing 102
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Old 06-29-2014, 06:23 PM
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Quote:
Originally Posted by GregWeld View Post
Mike,

You've asked a really loaded question with a whole bunch of answers.

There's MANY MANY ways to "diversify" your investments without trying to own each category in the S&P...

#1 -- It's not about just owning something in every category. There's sub categories... such as large cap or small cap - or even micro cap... within each category.

#2 -- I firmly believe too much diversification only leads to poor performance

#3 -- To be really diversified only means that you don't have all your eggs in one basket. That could also be defined as everything in stocks!

#4 -- Diversification depends on how much money you have. A guy with 10 grand can be somewhat diversified by just owning 5 different investments. He could own a bank - oil - drugs - retailer - and a food stock. For 10K I'd call that about as diversified as he/she should get.

#5 -- That wouldn't be nearly enough diversification for a guy with 100K or 1MM


#6 -- Just pay attention to QUALITY or trying to spread out "just because".

+++++++++++++++++++++++


RE: Pension


Only discuss this with a qualified Pension pro. There's so much to know and understand about pensions. And remember -- once you're involving other people - such as your employees... now you're taking on a fiduciary responsibility and you put yourself / company at risk if you don't do things right.

Personally -- in today's litigious environment - I'd never involve myself taking on that responsibility unless I had a really large company. I used to have to deal with this when I owned a company in NYC -- and also as a Board Director
at Seattle Yacht Club... it's a nightmare. No thanks!
THanx Greg, its very important to me as an employer to take care of the people and spread around the wealth a little, and yes wat a clusterfuc. And thats what my accountant keeps saying "fiduciary responsibility/liability", so yeah, things need to be done right. We used a good pension company, have a good accountant, and attorney. So I'll just keep doing my homework and sell as much glass and aluminum and service as I can.....and keep digging away.....

Anyways, thanx for your input. I really respect your opinion, even if you are just full of sh$t lol....
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