It should be considered a complement, rather than a substitute, to
other portfolio management techniques such as diversification, rebalancing and disciplined security analysis and selection.
It was not investment managers or brokers that discovered
prudent portfolio management techniques we now take for granted, but a small group of inquisitive mathematicians with enough stamina to charge against them.
The world is very different today than it was in 1972, and we are adjusting expected returns and
our portfolio management techniques accordingly.
The Reverse Scale Strategy -
the portfolio management technique which is developed in Chapter 7 - will work with virtually any type of stock portfolio, but it gives you your maximum advantage when applied to growth stocks.