On Diversification.

I'm reposting this because not only do I think it's important but for some reason others have told me they could not read the original.

To the extent it fits into a client's own unique profile we strongly advocate and try to practice diversification in our client portfolios. Understand though that means that at some point, a portion of a portfolio will be underperforming the market. Here is what Jim Cramer says about diversification. From Jim Cramer's "Stay Mad For Life".

"The price of diversification is owning loser-they can't all go up at once. If you are running a diversified portfolio-and I insist on that-you are going to have some loser stocks on up days. In fact, if they all go up at once, you probably aren't diversified enough, and when the down days occur, you are going to get clocked something awful. Something won't be working fi you are doing things right."