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WCI #256: Common Sense Investing with Rick Van Ness

White Coat Investor Podcast

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The Most Magical Way of Diversifying Stock

The most magical way of looking at diversifying stock is the more modern portfolio theory. The bill sharp and harry markoits an efficient frontiers topic, and this topic is,. it's magical in the sense that if you look at rate of return versus volatility, you could look at any three companies, any four companies to see which one does better than allof them individually. There actually is an ideal portfolio, an ideal portfolio that maximizes return for risk.

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