Comments on: Investment Mistakes http://www.tradingstocks.com/investment-mistakes Options Trading by Trading Stocks Fri, 11 Dec 2009 21:43:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Independent Stock Investing http://www.tradingstocks.com/investment-mistakes/comment-page-1#comment-662 Independent Stock Investing Fri, 11 Dec 2009 21:43:54 +0000 http://www.tradingstocks.com/?p=425#comment-662 Great articles, Larry. I especially agree with not timing the market and buying based on thinking independently. One thing about diversification .... it's important to know how many stocks constitute sufficient diversification. In my experience, if you pick strong companies with wide economic moats at attractive prices, you can get by with 6 or 7 such companies. Your risk is mitigated due to the strong fundamental criteria your companies pass before selection and the large margin of safety in the price. Great articles, Larry.

I especially agree with not timing the market and buying based on thinking independently.

One thing about diversification …. it’s important to know how many stocks constitute sufficient diversification.

In my experience, if you pick strong companies with wide economic moats at attractive prices, you can get by with 6 or 7 such companies. Your risk is mitigated due to the strong fundamental criteria your companies pass before selection and the large margin of safety in the price.

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