Investment adages that don't make sense

Yet they will not become extinct

John Rekenthaler 13 December, 2019 | 1:00AM

Road sign

Just words
Some of these sayings initially struck me as insightful, while others never did. Either way, here are four investment bromides that can safely be ignored.

1. You’re too diversified
This criticism is omnivorous, applying across the investment food chain. It is levied at mammoth pension funds that hire hundreds of subadvisors, as well individuals who have investments strewn across multiple brokers. Were there any retail mutual fund of funds still in business (they were once fashionable), the reprimand would be directed at them. I should know; I once routinely wrote such comments.

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About Author

John Rekenthaler

John Rekenthaler  John Rekenthaler is Vice President of Research for Morningstar.