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Dane Bowler

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  • Another View On 'Diversification Fallacies, Part 1: Asset Allocation' [View article]
    Varan,

    It was colored baskets not colored eggs........
    Jul 18 02:20 PM | Likes Like |Link to Comment
  • Diversification Fallacies, Part 2: Diversification Stacking [View article]
    Dividend Sleuth,

    I'm sorry that happened to you, but that resin pricing example is phenomenal as an educational tool. It would have been the perfect example to use in my article had I been aware of it.

    Thank you for sharing
    Jul 18 02:11 PM | Likes Like |Link to Comment
  • Another View On 'Diversification Fallacies, Part 1: Asset Allocation' [View article]
    Daniel Moser

    I never suggested the 5 REIT portfolio as an actual portfolio.

    It was merely an example of stocks that are typically not thought of as diverse by traditional asset allocation standards but in fact are diverse. It was used to illustrate the PROCESS of hand-crafted fundamental diversification.
    Jul 18 12:52 PM | Likes Like |Link to Comment
  • Another View On 'Diversification Fallacies, Part 1: Asset Allocation' [View article]
    Daniel,

    I like that SeekingAlpha facilitates discourse of this nature and I welcome disagreement, but I feel you missed some of the key concepts of my paper.

    1) the eggs and baskets analogy.

    I was saying that color of basket absolutely does not have any bearing on its egg carrying capabilities. Whereas you say I stated the following
    "The underlying assumption in the analogy used is that color is the only deterministic factor of a particular baskets ability to hold eggs as opposed to the materials used to construct the basket creating a certain level of "structural integrity" i.e. paper, plastic, aluminum, or steel."

    Of course my argument looks wrong when you say I said the opposite of what I actual said. Please understand my argument before you begin to refute it.

    In your second point you once again misrepresent my argument

    " He makes the following case, "many will suggest various weightings between small, mid, and large cap stocks. The only way doing so would increase diversification of a portfolio would be if each size had correlated risks." This statement does a pretty outstanding job of totally missing what drives a portfolio's diversification … which is less correlation among assets - not more"

    If the different sizes actually had correlated risks, spreading equally between them would increase diversification. I don't even understand what you are suggesting I said but I certainly didn't say more correlation increased diversification.

    PLEASE understand and accurately report my argument.
    You are refuting arguments I didn't even make. This is damaging to my reputation and borderline slanderous. The quotations of my article are faithful, but you follow each quotation with your interpretation of my words and in many cases your interpretation is the exact opposite of what I was actually saying.
    Jul 18 12:41 PM | Likes Like |Link to Comment
  • Diversification Fallacies, Part 2: Diversification Stacking [View article]
    AFAHM,

    Timing/entrace point is not talked about as much as it should be. Thank you for bringing it to light. Even a weak company can be a good buy if it is priced as a very weak company.
    Jul 18 10:00 AM | 1 Like Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    Well said Nate
    Jul 17 09:24 PM | 1 Like Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    Chris,

    Please note that I said specifically that there were far more risks than I listed.
    Jul 17 09:24 PM | Likes Like |Link to Comment
  • W.P. Carey Is A REIT On Fire, But Can The Shares Go Any Higher? [View article]
    Great work Brad,

    I think your analysis that its strong but overpriced is spot on. On an unrelated note, would you mind clarifying this statement?

    "Today, price to funds from operations has ballooned to 43.1, which is more than three times its historical norms."

    FactSet puts them at 20 P/FFO which is approximately what you had in the graph above. Where did the 43.1 figure come from?

    Thanks
    Jul 17 04:08 PM | 1 Like Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    David,

    That is an interesting perspective. Thanks for sharing
    Jul 17 03:38 PM | 1 Like Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    sportsfan,

    It waters down expected returns to the weighted average of the portfolio as compared to the single stock the investor feels has the greatest expected returns.

    Thanks for allowing me to clarify
    Jul 17 03:37 PM | Likes Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    tampat,

    Yes I am and I believe that I do. My 100% REIT portfolio is disclosed here.

    http://seekingalpha.co...
    Jul 17 03:35 PM | 1 Like Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    Well OHI provides a very different exposure than the others as it is all SNFs while VTR is mixed and MPW is hospitals, but on a valuation basis it could be. MPW is approximately as cheap and AHT is a superior value.

    In my opinion, VTR is a bit overpriced at the moment.
    Jul 17 03:33 PM | 1 Like Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    Keu4bike,

    That sounds completely reasonable. You are using the heuristic with full awareness of its weaknesses.

    The main thing I am trying to combat is the notion that it is a NECESSARY action.

    Thank you for presenting your balanced view
    Jul 17 02:19 PM | 1 Like Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    jason,

    reread the sentence you quoted.

    I said nothing about a portfolio. In fact if the read the entire article, you will see that we are in agreement.
    Jul 17 12:26 PM | Likes Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    ThinkingBig,

    I agree that SA is a great site for strong investment discourse. In terms of the next piece, I am working on it presently.
    Jul 17 12:25 PM | Likes Like |Link to Comment
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