dothesums blog

Link: http://www.dothesums.co.uk/blog

It seems that home repossessions have been much less in this recession than have been previously expected, given the fall in property prices and the rise in unemployment.

Very roughly they have been running at one third of the level of the last recession in the early nineties. Lenders have taken advantage of the cheap cost of funds and have seen it very much in their self-interest to keep borrowers going, if at all possible.

Yet again I have been lectured about the need for a diversified portfolio.
Can I point out again that this received wisdom is a get-out clause, designed to protect incompetent advisers rather than their clients.
If you don't believe me, see the investment strategy of one Warren Buffet and the comment of Felix Dennis under The Power of Focus 'THEN GO TO WHERE THE MONEY IS! That is where you should focus your efforts'.
The tool to use is Pareto Analysis,(The 80/20 Rule).