Look Down Before Looking Up Don’t Put All Your Eggs in One Sector

Put a Cap on Industry Exposure

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We do cap a given industry’s exposure at 25% of the portfolio, which is a check on the innate lack of humility we often have as investment managers. Owning five or six positions in an industry is a good, strong bet, but also isn’t betting the house on how smart we are relative to everyone else.
Source: http://www.valueinvestorinsight.com/