Perhaps more
important than his individual stock picks however, is Einhorn's portfolio construct:
With MPT and asset allocation, the proportion of stocks to bonds is more
important than individual stock picking.
In investing, asset allocation (or the overall composition of your portfolio) is more
important than any individual stock within it.
Not exact matches
In other words, the
individual stocks, bonds, and funds you choose or when you buy or sell is less
important to your ultimate return
than the percent allocated to various asset classes.
After U.S.
stocks dropped roughly 10 % in ten trading days, it's more
important than ever for
individuals to understand what it means, and what it takes, to be a long - term investor.
The former would be a
stock picker's market, the latter would be a market when sector exposure (and specifically, which sectors you were exposed to) would be more
important than which
individual stocks you owned.