Yes to Diversification, But Through Proven Performers

Yes to Diversification, But Through Proven Performers

Past performance is never a guarantee of future results, but long-term portfolio management success is an excellent first filter. Very, very few investment managers outperform the market in the long term. Among the highly select group which does, many employ a version of the Margin of Safety (sometimes called value investing). Most ply their craft at firms other than the top brokerages or biggest mutual fund families. Most also perform consistently–doing well during tough bear markets as well as in bull markets. A good financial strategy should pay careful attention to these people and their considerable abilities.