Motley Fool: The Goldilocks Portfolio

September 19th, 2006 No Comments » | POSTED BY ROB

Twenty years ago the cutting edge of grocery was the bin shop, where cocoa, cornflakes and custard powder were arrayed in laundry basket size tubs. I loved shovelling soup powder and soap powder into plastic bags (separate ones), imagining how much money I was saving with every scoop.

In one shop the owner proudly told me that his special soup mix was made from seven different soup powders. Perhaps Goldilocks would have preferred this most average of soups – I didn’t. However, in investing, a well chosen mix will give your portfolio a flavour that’s less volatile and easier on the stomach. The problem is how much of each share to put in?…

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