What is Financial Portfolio “DI-WORSIFICATION”

Posted on April 9, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

Versus Di-Versification

BUSINESS MANAGEMENT: The term “diworsification” was coined by legendary investor Peter Lynch in his book, One up on Wall Street, to describe the over-expansion of a company into new growth projects and businesses they do not fully understand and which do not align with the company’s core competencies.

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PORTFOLIO MANAGEMENT: The term diworsification has since grown to also refer to over-diversifying an investment portfolio in such a way that it reduces the overall risk-return characteristics.

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INVESTOPEDIA: https://www.investopedia.com/terms/d/diworsification.asp

READ: https://medicalexecutivepost.com/2014/11/12/the-negative-short-term-implications-of-diversification/

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DAILY UPDATE: U.S.A. Stock Markets Little Changed

Posted on April 9, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Like use, investors were a little checked out yesterday, focusing on the eclipse or maybe the fact that earnings season starts later this week, and stocks were relatively flat. Diamondback Energy hit an all-time high following several other energy companies that did so last week as oil prices surge.

Here’s where the major benchmarks ended:

  • The S&P 500® index (SPX) lost 1.95 points (0.04%) to 5,202.39; the Dow Jones Industrial Average® ($DJI) eased 11.24 points (0.03%) to 38,892.80; the NASDAQ Composite® ($COMP) gained 5.44 points (0.03%) to 16,253.96.
  • The 10-year Treasury note yield rose more than 4 basis points to 4.422%.
  • The CBOE Volatility Index® (VIX) fell 0.84 to 15.19.

Bank shares were among Monday’s strongest performers, sending the KBW Regional Banking Index (KRX) up 1.5%. Consumer discretionary companies were also strong. WTI Crude Oil (/CL) futures fell sharply earlier in the session following reports Israel had removed some troops from Gaza but bounced back to end down 0.5% at around $86.47 per barrel.

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The Path to Successful Investing

Posted on April 9, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

By Vitaliy Katsenelson, CFA
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Something weird happened to me on Twitter a few months ago. A “follower” started lashing out at me about a stock we own. When people attack me for my views it doesn’t bother me (I wrote several chapters in Soul in the Game on this topic). I don’t let personal attacks get to me, unless people start attaching bricks to their 280 characters. 

This person’s lambasting of me was different. He was upset about the decline of a stock I had never publicly discussed in any of my newsletters or talks. This person was not a client. I didn’t know who he was; I had never met him. I was really confused why a stock my clients and I personally owned was so important to him. It’s like someone being upset about the color my wife chose to paint our kitchen.

Once gently confronted, he apologized, said he was a big fan, and explained that he had read my 13F (a form we have to file with the SEC 45 days after the quarter end, where we have to report our holdings in US stocks). He saw that the stock was one of our top holdings, and he bought it. Because I owned it, he made it a disproportionately large position.

I was truly upset about this incident. One of my principles in life is to have a net positive impact on the people I touch. If every single stock I discussed only went straight up, I wouldn’t have to worry about it. But this is not how life works.

Let me give you an example: No Shortcuts to Greatness: The Path to Successful Investing

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