Aggressive · Conservative · Income · Other

Diversification – thebuttonwoodproject Portfolios

Eggs DiversifySince I last presented information on diversification back in August, I made some changes to the Conservative Portfolio by removing Kimberly-Clark Corp. and Oakmark International Fund and replaced them with Schlumberger, Ltd and Dodge & Cox International Stock Fund. I eliminated Consolidated Edison from the Income list early this year and replaced it with integrated oil and gas producer Total, SA last week.  The Aggressive Portfolio has remained unchanged since then, but I wanted to share with my readers how the three portfolios stack up as far as diversification is concerned. Investors must keep in mind that diversification by asset class is extremely important and, depending on one’s investment horizon, need for income and tolerance for risk, an assortment of cash equivalent assets, equities, fixed income and various alternative investments all need to be evaluated and allocated accordingly. For the equity portion, diversification among various sectors of the economy is just as critical and I try to keep a balance within each portfolio to avoid too much concentration in one industry group. Here is the latest view of all three lists:


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