Buffett versus Gross – We have a winner!

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In August, 2010, I wrote about the opposite approaches that arguably two of the most successful investors of all time have taken related to bonds.   Bill Gross not only sold all of the US government debt in the PIMCO Total Return Fund, he was so convinced that the price of US Government debt would drop he went so far as to sell the debt short.  Warren Buffett, on the other hand, felt that US Treasury Bonds were a solid investment ...

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Diversification in Action

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Diversification is a great way to reduce the ups and downs in your portfolio.  This morning, the effects of the earthquake in Japan and related issues around their nuclear reactors are wrecking havoc on stock markets around the world.  The Japanese market was down about 10.6%, Germany’s market was down about 4.8% and the US market (as measured by the S&P500) opened down about 2.5%.

How does this prove that diversification works if the major stock markets are all down on ...

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