12. Constructing a Long-Term, Diversified Portfolio

“If I’m not back in five minutes...just wait longer.”

—Ace Ventura (played by Jim Carey) in Ace Ventura: Pet Detective (1994)

As a Buy and Hedge investor, time is on your side. Your portfolio is built to out-perform over long stretches—not short ones. Be patient. Give your portfolio more than five minutes to succeed.

Rule #3 is that a smart portfolio equals long-term outlook plus diversification.

The first Iron Rule is investment-specific and goes to the heart of the Buy and Hedge strategy. Rule #2 is about the measurements that support both portfolio management and portfolio construction. Rule #3 is all about portfolio construction. To build an effective Buy and Hedge portfolio, you need to ...

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