John Rogers : Subprime Risks - Overblown

John RogersJohn W. Rogers Jr., chairman and CEO of Ariel Capital Management, writes a piece on Forbes.

  • During tough times like these I stay focused on the areas I know best, which keeps me calm and confident in my decisions.
  • This way I can concentrate on what matters most: underlying business fundamentals. And I don't waste time worrying about things I can't control or predict, like what sectors will be in vogue next or where interest rates are going.
  • When times get tough, fear leads people to overdiversify their investments in hopes of minimizing losses. Bad idea.
  • There are a number of sectors I don't buy because they are outside my circle. Maybe some people can consistently predict commodity prices. I can't, so I don't try. Similarly, you won't see me investing in the latest and greatest technology. The rapid obsolescence scares me.
  • On the other hand, financial stocks are one of the biggest weightings in my portfolios.
Direct Link - Subprime Risks: Overblown.

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