Friday, October 5, 2012

Limiting


Once you realize time is the limiting factor, it is tempting to jump to the conclusion that there are situations where prolific in good ideas and a wealth of excellent output could come together.

For example, in the case of investment.

The consideration is obvious: Although we all have only 24 hours a day and cannot work out as many good ideas as we could generate, you can certainly invest on as many stocks (or options, warrants, bonds, ELIs, and what not) as you like - provided that you have sufficient money.

In fact, this idea is well utilized by many mutual funds. For example, Peter Lynch is probably blessed by the muse of investment and could make use of almost aspect of ordinary  daily life – the Fidelity Fund under his management used to hold close to 1500 different stocks. (See One Up On Wall Street.)

They call it diversification.

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