I am close to 99-1. When my signal says to sell, I'll be going to more like 10-90, no baby steps.

I have to say, this is my approach as well. I started out thinking that the path to investing success lay through diversification, but back then I always felt that too much of my money was in the wrong things. For a simple-minded retail investor like myself, the only reason to own anything other than equities is to moderate the volatility of the overall portfolio. Once I worked out that volatility was not risk, I just bought equities. Like rayvt, I use slow-twitch timing to avoid serious downturns, and sometimes it steers me wrong; but never for long. I have reasonable confidence in my ability to dodge the mega-bears (e.g. 2001 and 2008); and that gives me the patience to put up with the regular ones. On balance, I just feel better being 100% wrong part of the time than partly wrong all the time.

Baltassar

Berkshire Hathaway FAQ

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