FSPTX, Fido Select Tech Fund...good AI fund play??

[retiredat48]

Here is info I sent to my daughter, who has 85% of her large IRA in this holding, FSPTX, Fido Select Technology Fund...and it is my largest fund holding:

-----------------------------------

Message to Daughter three: (Percent below is percent of portfolio the holding represents). Very pleased with this set of holdings for you and me, owned past three decades. Note global foundries is the chip maker 5 miles from our NY home. Go Nvidia! 


FSPTX...NAV /23.94

1-Day Return

+4.09%

Total Assets

9.3 Bil


Top 10 holdings:

Apple Inc ....19.76% ....Feb 28, 2002 1,872,019,005 0.00 23.77 29.07
Technology

Microsoft Corp ...16.27%   Apr 30, 2015 1,540,959,464 0.00 25.16 29.50
Technology

NVIDIA Corp... 9.69%    Jul 31, 2016 918,073,460 3.49% Increase 123.84 84.03
Technology

Mastercard Inc Class A ...4.21    Dec 31, 2018 398,471,797 17.64% Decrease 7.95 30.12
Financial Services

NXP Semiconductors NV... 4.04     May 31, 2019 382,930,515 0.00 -5.28 12.94
Technology

Marvell Technology Inc ...4.00     Dec 31, 2014 379,202,954 4.00% Increase -7.88 30.58
Technology

Salesforce Inc ...3.44     Aug 31, 2006 326,191,195 9.62% Increase 31.48 29.41
Technology

Cisco Systems Inc ...3.36    Jan 31, 2022 318,149,466 0.00 14.91 12.14
Technology

ON Semiconductor Corp ...3.22    Jul 31, 2020 305,007,701 2.8% Decrease 45.80 17.42
Technology

GLOBALFOUNDRIES Inc ....2.6

------------------------------------------------------


This is my current Artificial Intelligence play. Is there a better fund that is more involved in AI? let's discuss.



R48

[Karen]

Thank you for starting this thread on this particular topic! We've wanted to delve into this topic a bit more but age and health have been getting in the way recently.

We were holders of FSPTX many years ago. Somewhere along the line we switched that allocation to FSELX. We believe a solid argument can be made for FSELX being one of, if not the best TR, domestic stock OEFs available. Period.
(We used to say that about FSPTX.  Great choice!)

FSELX is not for the faint-hearted. We limit our allocation to never more than 10%-15% overall and increase/decrease it within an allocation range.
FSELX has an ~30% stake in NVDA. FSELX was up ~16%-17% over the past two days.
fundresearch.fidelity.com/mutual-funds/summary/316390863?type=o-NavBar

Not sure about overall AI exposure, but being a semiconductor sector fund, we trust we are getting comparable AI exposure to FSTPX, which happens to be one of the 4 OEFs in this Zack's (for example, and perhaps dated) piece from Sept 2020. We have not attempted to carve out AI exposure in any of these OEFs
www.nasdaq.com/articles/4-mutual-funds-to-ride-the-boom-in-artificial-intelligence-2020-09-22

or any of the many ETFs in this basic Search (We generally hold OEFs, not ETFs)
www.google.com/search?q=mutual+funds+with+AI+exposure&oq=mutual+funds+with+AI+exposure&aqs=chrome..69i57j33i22i29i30l5.7940j0j15&sourceid=chrome&ie=UTF-8

It appears there are plenty of AI ETFs that are perhaps more concentrated in AI than either FSTPX or FSELX. The above Search would appear to be a base off which to dive into the OP's topic. We decided at '22 EOY to simply increase our FSELX allocation to its max allocation as our play on AI.

BTW, here's a quick look at some of the OEFs we've looked at and are noted in the Zack's piece
fundresearch.fidelity.com/fund-screener/results/compare/overview/averageAnnualReturnsYear3/desc/1?order=&tickers=FSPTX%2CKTCAX%2CFKDNX%2CFSELX%2CTGFTX

[retiredat48]

Karen,...Thanks Karen...great reply post. Excellent articles and info. So far, FSELX surely doing best, but noting it is a play focused solely on semi-conductors.

One aspect is that articles written such as in 2020 perhaps did not reflect the speed and depth of the current chat-gpt type of AI underway. Begs the question of whether a broader set of companies, and a couple funds/ETFs will better FSELX. Or have less volatility.

Hope others repy here.

Thanks again Karen.

R48

[coptomist]

Thanks for the post retiredat48,

Just as an Fyi, the SPY and the QQQ have approximately 2.7% and 6.75% NVDA exposure. I have about 10% in Qqq at this time.

Fortunately for me I put a very small amount into NVDA the day before the dividend announcement. So, I doubled up on that, post announcement day, and added a bit of SMH as my approach to capturing some of the the new AI tech boom.

I have a relatively large exposure to the Spy/Ivv/Qqq stuff, since3/4 of my assets are taxable. When deciding how much you want to put in these added tech funds, be aware that the SPY has NVDA as its 4th largest holding already.

[chang]

FBGRX is 100% of my Roth about about 10% of my Trad. The top holdings look similar, but obviously more diversified.

[Karen]

Note that determining the AI exposure level is tricky. Even the methodology for calculating the exposure varies as described in this article from May 2022:
www.thebalancemoney.com/best-ai-etfs-artificial-intelligence-sector-funds-4173877

Picking the Best AI ETFs

Identifying the best AI ETFs on the investor level is a subjective exercise. For example, some investors may want a fund that focuses primarily on AI stocks, while others may want a tech stock fund that only allocates a portion of the fund's assets to AI stocks. There are also funds that use artificial intelligence to choose the holdings.

Here is a summary of the basic types of artificial intelligence ETFs:

Focused AI ETFs: These are ETFs that invest specifically in companies involved in products or services related to artificial intelligence. These funds typically have 100 percent exposure to AI stocks.

Limited Exposure AI ETFs: These funds have at least 25% of portfolio exposure to companies that use AI technology. Examples of such companies are Amazon (AMZN), Tesla Motors (TSLA), Apple (AAPL), and Alphabet (GOOG, GOOGL).

AI-Managed Funds: These funds may not invest in AI stocks but the fund itself utilizes AI technology to select the individual securities to be held in the fund.

In no particular order, here are some of the best AI ETFs to buy now:

The article then details ETFs BOTZ, ROBO and AIIQ.

Here's a Fido comparison of FSELX, FSPTX, BOTZ and ROBO.  AIIQ showing there as invalid.
fundresearch.fidelity.com/fund-screener/results/compare/overview/averageAnnualReturnsYear3/desc/1?order=&tickers=FSELX%2CFSPTX%2CBOTZ%2CROBO

[Karen]

And there's this today from MarketWatch on individual stocks.

From McDonald’s to Morgan Stanley, UBS says these stocks are favorably positioned for AI
marketwatch.cmail20.com/t/j-e-eduljjy-iudyhiljg-r/

[retiredat48]

May 26, 2023 23:05:18 GMT Karen said:

Thank you for starting this thread on this particular topic! We've wanted to delve into this topic a bit more but age and health have been getting in the way recently.

We were holders of FSPTX many years ago. Somewhere along the line we switched that allocation to FSELX. We believe a solid argument can be made for FSELX being one of, if not the best TR, domestic stock OEFs available. Period.
(We used to say that about FSPTX.  Great choice!)

FSELX is not for the faint-hearted. We limit our allocation to never more than 10%-15% overall and increase/decrease it within an allocation range.
FSELX has an ~30% stake in NVDA. FSELX was up ~16%-17% over the past two days.
fundresearch.fidelity.com/mutual-funds/summary/316390863?type=o-NavBar

Not sure about overall AI exposure, but being a semiconductor sector fund, we trust we are getting comparable AI exposure to FSTPX, which happens to be one of the 4 OEFs in this Zack's (for example, and perhaps dated) piece from Sept 2020. We have not attempted to carve out AI exposure in any of these OEFs
www.nasdaq.com/articles/4-mutual-funds-to-ride-the-boom-in-artificial-intelligence-2020-09-22

or any of the many ETFs in this basic Search (We generally hold OEFs, not ETFs)
www.google.com/search?q=mutual+funds+with+AI+exposure&oq=mutual+funds+with+AI+exposure&aqs=chrome..69i57j33i22i29i30l5.7940j0j15&sourceid=chrome&ie=UTF-8

It appears there are plenty of AI ETFs that are perhaps more concentrated in AI than either FSTPX or FSELX. The above Search would appear to be a base off which to dive into the OP's topic. We decided at '22 EOY to simply increase our FSELX allocation to its max allocation as our play on AI.

BTW, here's a quick look at some of the OEFs we've looked at and are noted in the Zack's piece
fundresearch.fidelity.com/fund-screener/results/compare/overview/averageAnnualReturnsYear3/desc/1?order=&tickers=FSPTX%2CKTCAX%2CFKDNX%2CFSELX%2CTGFTX

Karen,...Hi.  Querry.  This is an excellent fit post to my OP.  Would you mind if I posted it on the fidelity forum where I sponsored the same original thread as above?  I would give full attribution to your posting name "Karen."

Thanks in advance.

R48

[Karen]

May 30, 2023 22:32:49 GMT retiredat48 said:

May 26, 2023 23:05:18 GMT Karen said:

Thank you for starting this thread on this particular topic! We've wanted to delve into this topic a bit more but age and health have been getting in the way recently.

We were holders of FSPTX many years ago. Somewhere along the line we switched that allocation to FSELX. We believe a solid argument can be made for FSELX being one of, if not the best TR, domestic stock OEFs available. Period.
(We used to say that about FSPTX.  Great choice!)

FSELX is not for the faint-hearted. We limit our allocation to never more than 10%-15% overall and increase/decrease it within an allocation range.
FSELX has an ~30% stake in NVDA. FSELX was up ~16%-17% over the past two days.
fundresearch.fidelity.com/mutual-funds/summary/316390863?type=o-NavBar

Not sure about overall AI exposure, but being a semiconductor sector fund, we trust we are getting comparable AI exposure to FSTPX, which happens to be one of the 4 OEFs in this Zack's (for example, and perhaps dated) piece from Sept 2020. We have not attempted to carve out AI exposure in any of these OEFs
www.nasdaq.com/articles/4-mutual-funds-to-ride-the-boom-in-artificial-intelligence-2020-09-22

or any of the many ETFs in this basic Search (We generally hold OEFs, not ETFs)
www.google.com/search?q=mutual+funds+with+AI+exposure&oq=mutual+funds+with+AI+exposure&aqs=chrome..69i57j33i22i29i30l5.7940j0j15&sourceid=chrome&ie=UTF-8

It appears there are plenty of AI ETFs that are perhaps more concentrated in AI than either FSTPX or FSELX. The above Search would appear to be a base off which to dive into the OP's topic. We decided at '22 EOY to simply increase our FSELX allocation to its max allocation as our play on AI.

BTW, here's a quick look at some of the OEFs we've looked at and are noted in the Zack's piece
fundresearch.fidelity.com/fund-screener/results/compare/overview/averageAnnualReturnsYear3/desc/1?order=&tickers=FSPTX%2CKTCAX%2CFKDNX%2CFSELX%2CTGFTX

Karen ,...Hi.  Querry.  This is an excellent fit post to my OP.  Would you mind if I posted it on the fidelity forum where I sponsored the same original thread as above?  I would give full attribution to your posting name "Karen."

Thanks in advance.

R48

Thanks for asking.  I guess you are free to do whatever you want, but I'd prefer you do not copy/paste it there.  I don't participate on that forum and would not be able to reply there.  Also, I've posted a couple times here and I consider my posts here to build on the prior ones.  Maybe just link a reference to your parallel thread here?

[Karen]

www.fool.com/investing/2023/05/30/prediction-these-6-ai-stocks-will-be-worth-a-combi/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

AI's big six
It's no coincidence that 6 out of the 7 biggest stocks based on market cap that trade on U.S. exchanges have a major focus on AI. These big six of AI are:

STOCK MARKET CAP
Apple (AAPL 1.10%) $2.7 trillion
Microsoft (MSFT 0.95%) $2.4 trillion
Alphabet (GOOG -0.14%) (GOOGL -0.03%) $1.6 trillion
Amazon (AMZN -0.44%) $1.2 trillion
Nvidia (NVDA -1.35%) $934 billion
Meta Platforms (META 0.21%) $648 billion

FWIW, in addition to the large NVDA allocation in FSELX, we get exposure to the bulk of these through FDSVX. 

[archer]

Karen, You mentioned AIIQ came up as invalid. Perhaps the ticker should be AIQ?

If so, here is some info on it's AI focus:

Fund Summary
The fund invests at least 80% of its total assets in the securities of the underlying index. The underlying index is designed to track the performance of companies involved in the development and utilization of artificial intelligence ("AI") and big data. The fund is non-diversified.

I think this fund has a lot going for it for anyone wanting to get into AI. It also appears less volatile than the overall semis index, has performed pretty much identical to FSPTX over the past year. It is less concentrated in it's top holdings. Stockcharts.com gives it a technical ranking score of 99.9 out of 100.

[Karen]

Jun 1, 2023 14:42:07 GMT archer said:

Karen , You mentioned AIIQ came up as invalid. Perhaps the ticker should be AIQ?

If so, here is some info on it's AI focus:

Fund Summary
The fund invests at least 80% of its total assets in the securities of the underlying index. The underlying index is designed to track the performance of companies involved in the development and utilization of artificial intelligence ("AI") and big data. The fund is non-diversified.

I think this fund has a lot going for it for anyone wanting to get into AI. It also appears less volatile than the overall semis index, has performed pretty much identical to FSPTX over the past year. It is less concentrated in it's top holdings. Stockcharts.com gives it a technical ranking score of 99.9 out of 100.

Yes, thanks!
The symbol was apparently incorrect in the linked article, stating AIIQ instead of AIQ.
Here is an updated Fido comparison adding AIQ.
fundresearch.fidelity.com/fund-screener/results/compare/overview/averageAnnualReturnsYear3/desc/1?order=&tickers=FSELX%2CFSPTX%2CBOTZ%2CROBO%2CAIQ

Also, here is a link to a Barron's article dated today about the AI rally
barrons.cmail20.com/t/j-e-ehlqjk-iudyhilyuj-r/

[Karen]

From yogibearbull 's weekly Barron's summary, Part 1:

Pg 5, UP AND DOWN WALL STREET. How to play AI for investing? New technologies (and financial innovations) have led to prior market booms and busts. AI may be the next big thing. It will rewrite almost everything, including investing. There is an AI ETF AIEQ. AI is still in the experimental stages and doesn’t yet provide reliable answers for businesses – it may provide different answers to the same question on different days. It may be helpful in going through lots of text and data quickly. Many banks and broker-dealers are rushing into the generative AI, but some are cautious. ChatGPT has been available only since 11/30/22 and its database is up to date only to 09/2021. In many areas, it won’t provide answers or just some boilerplate answers. Generative AI isn’t ready for prime time yet.

[archer]

Jun 3, 2023 12:44:58 GMT Karen said:

Generative AI isn’t ready for prime time yet.

And given the rest of the report, will it ever be ready? Will it meet expectations? Maybe not, but in it's current state, I see it as a success. In the past I would google questions. There are aspects of googling that I still appreciate, but I have also deferred to ChatGPT as it is more intuitive when it comes to queries that I find hard to word in a way that Google understands. AI also gives me direct answers so I don't need to weed through google entries that don't apply, and AI provides the ability to dialog and take directions for digging deeper. IMO it is already a game changer. There may be pull backs in AI stocks as people come to terms with it not meeting expectations of speculators, but I'm putting money on it being a good player for the long haul.

[retiredat48]

@ Karen , who posted: "Thanks for asking. I guess you are free to do whatever you want, but I'd prefer you do not copy/paste it there. I don't participate on that forum and would not be able to reply there. Also, I've posted a couple times here and I consider my posts here to build on the prior ones. Maybe just link a reference to your parallel thread here?"

OK got it...will only use partial parts if any...and a reference to parallel thread herein.

R48

[retiredat48]

I posted on fido:


By e-mail, a reader suggested look at Vanguard's VITAX Information Technology Fund. Yes, an alternative. I note it looks like FSPTX has rallied more, and FSPTX more of pure-play AI holdings. (larger NVIDIA, more semi-c's and holds top performer Marvell Techn.) Here are top 10 holding comparisons:



FSPTX:



Top 10 Holdings

% Portfolio Weight

Market Value USD

Sector



Apple Inc

19.76% weight

1,872,019,005

Technology


Microsoft Corp

16.27

1,540,959,464

Technology


NVIDIA Corp

9.69

918,073,460

Technology


Mastercard Inc Class A

4.21

398,471,797

Financial Services


NXP Semiconductors NV

4.04

382,930,515

Technology


Marvell Technology Inc

4.00

379,202,954

Technology


Salesforce Inc

3.44

326,191,195

Technology


Cisco Systems Inc

3.36

318,149,466

Technology


ON Semiconductor Corp

3.22

305,007,701

Technology


GLOBALFOUNDRIES Inc

2.62%weight

247,873,843

Technology





----------------------------------------------------------------------------



VITAX:



Apple Inc

23.50%

12,485,344,044

Technology


Microsoft Corp

19.29

10,249,978,211

Technology


NVIDIA Corp

6.12

3,249,129,855

Technology


Visa Inc Class A

3.16

1,677,700,766

Financial Services


Mastercard Inc Class A

2.91

1,546,454,939

Financial Services


Broadcom Inc

2.25

1,194,395,937

Technology


Salesforce Inc

1.75

930,308,881

Technology


Cisco Systems Inc

1.74

922,346,649

Technology


Accenture PLC Class A

1.58

837,486,900

Technology


Adobe Inc

1.57%

835,169,139

Technology


--------------------------------------------------
R48

[retiredat48]

BTW I also own some VGT, Vanguard InformationTechnology Fund...(not too shabby!)



Top 10 Holdings: VGT



EXPORT HOLDINGS

Symbol Name % Weight Price % Change


AAPL Apple Inc 23.50% 177.34 1.09%


MSFT Microsoft Corp 19.29% 331.22 -0.50%


NVDA NVIDIA Corp 6.12% 401.14 3.00%


V Visa Inc 3.16% 221.67 -1.48%


MA Mastercard Inc 2.91% 367.47 -1.84%


AVGO Broadcom Inc 2.25% 802.20 -1.30%


CRM Salesforce Inc 1.75% 218.87 1.59%


CSCO Cisco Systems Inc 1.74% 50.19 0.66%


ACN Accenture PLC 1.58% 308.41 1.58%


ADBE Adobe Inc 1.57% 417.26 0.45%

-----------------------------------------------------

R48

[yogibearbull]

BTW, Fido Inv Community (FIC) is a closed forum, so posts at FIC cannot be linked here (they would open only for FIC members).

On the other hand, BB is an open forum, so the posts here can be linked at FIC.

FWIW, I have taken a break from posting on the FIC for a while.

[retiredat48]

Jun 3, 2023 17:07:05 GMT yogibearbull said:

BTW, Fido Inv Community (FIC) is a closed forum, so posts at FIC cannot be linked here (they would open only for FIC members).

On the other hand, BB is an open forum, so the posts here can be linked at FIC.

FWIW, I have taken a break from posting on the FIC for a while.

Interesting, Yogi.

I am also cutting back some.  Fido losing some luster.

One issue for me is the extent of relentless daily "chatter"...people just talking things unrelated to investing...like what the weather is like today where they live!!  ...Or what they had for dinner last night.  Other forums, be wary of this tendency to develop with some daily posters.

Oops...don't want to take this thread in a tangent ...back to AI.

R48

[FD1000]

Looks like FSPTX has a great performance for 1-3 years. FSELX is better (Attach 1), it's not a surprise since semis leads tech. Both have concentrated portfolio where the first 6-8 holdings are 70+% of the portfolio (Buffett=“Diversification is a protection against ignorance,”)

Attach 2 = FSPTX holdings
Attach 3 = FSELX holdings
All attachments are from Fidelity.

BTW, my SIL has 50/50 VTI/QQQ = easy choice.

Attachments:

[roi2020]

Jun 3, 2023 22:00:44 GMT FD1000 said:

Looks like FSPTX has a great performance for 1-3 years. FSELX is better (Attach 1), it's not a surprise since semis leads tech. Both have concentrated portfolio where the first 6-8 holdings are 70+% of the portfolio (Buffett=“Diversification is a protection against ignorance,”)

<snip>

Warren Buffett's investing style is vastly different that your style.
Despite this fact, you have repeatedly used Mr. Buffett's diversification "quote" to bolster your commentary.
Please allow me to provide some much-needed context once again.


Warren Buffett talking to MBA students:

"If you are not a professional investor; if your goal is not to manage in such a way that you get a significantly better return than the world,
then I believe in extreme diversification.
I believe that 98 or 99 percent —maybe more than 99 percent—of people who invest should extensively diversify and not trade.
That leads them to an index fund with very low costs.
All they’re going to do is own a part of America.
They’ve made a decision that owning a part of America is worthwhile.
I don’t quarrel with that at all. That is the way they should approach it."

financinglife.org/learn-how-to-invest/warren-buffett-on-diversification/

[chang]

I find LCG funds tend to be technology heavy, so a good LCG fund gives me adequate exposure to technology ... and other sectors, as the manager sees fit.

I'm not really a fan of sector funds, since they're really trading vehicles, and I don't believe in sector trading (I believe it's a certain recipe for underperformance.) But I've actually been holding a couple of sector funds in my T-IRA for a few years now -- FSMEX and FSUTX. I honestly don't know whether I should keep holding these; but every time I look at the account, I can't come up with better ideas. (Speaking of LCG, my Roth is 100% FBGRX, and I hold more of the same fund in the TIRA.)

[FD1000]

Jun 3, 2023 22:34:30 GMT roi2020 said:

Jun 3, 2023 22:00:44 GMT FD1000 said:

Looks like FSPTX has a great performance for 1-3 years. FSELX is better (Attach 1), it's not a surprise since semis leads tech. Both have concentrated portfolio where the first 6-8 holdings are 70+% of the portfolio (Buffett=“Diversification is a protection against ignorance,”)

<snip>

Warren Buffett's investing style is vastly different that your style.
Despite this fact, you have repeatedly used Mr. Buffett's diversification "quote" to bolster your commentary.
Please allow me to provide some much-needed context once again.


Warren Buffett talking to MBA students:

"If you are not a professional investor; if your goal is not to manage in such a way that you get a significantly better return than the world,
then I believe in extreme diversification.
I believe that 98 or 99 percent —maybe more than 99 percent—of people who invest should extensively diversify and not trade.
That leads them to an index fund with very low costs.
All they’re going to do is own a part of America.
They’ve made a decision that owning a part of America is worthwhile.
I don’t quarrel with that at all. That is the way they should approach it."

financinglife.org/learn-how-to-invest/warren-buffett-on-diversification/

You missed twice:
1) I didn't post anything about my style, so why did you mention it?
2) The fund managers are professional investors. IMO, they did the right thing because the numbers show it.

BTW, "pure" diversifiers will tell you that the SP500 isn't enough, you got to own MC+SC+international+others. In retirement, most should own some bonds.

[mnfish]

Well, it's nice to see that holding a fund with a large concentration of AAPL is now fashionable. It's currently 26% of my portfolio. Still less than Buffet.

[Karen]

Good article about the question of an AI bubble:
www.yahoo.com/finance/news/artificial-intelligence-absolute-insanity-3-201500627.html

FWIW, with it's incredible LT outperformance of the overall market, we don't regard sector fund FSELX as a "trading vehicle", but rather as a permanent portfolio position with an allocation range usually between 10%-15%.

[yogibearbull]

There have been some instances of generative AI making up facts and/or references when pushed by persistent interrogators. So, a TX judge says no legal AI briefs in HIS court room. A futile effort.
finance.yahoo.com/news/does-ai-belong-in-the-courtroom-a-texas-judge-doesnt-think-so-134225614.html?ncid=twitter_yfsocialtw_l1gbd0noiom

[yogibearbull]

A list of best SP500 stocks over 30 years may surprise many. It isn't all tech (actually, only some tech). Twitter LINK

[roi2020]

Jun 4, 2023 10:19:06 GMT FD1000 said:

Jun 3, 2023 22:34:30 GMT roi2020 said:

Warren Buffett's investing style is vastly different that your style.
Despite this fact, you have repeatedly used Mr. Buffett's diversification "quote" to bolster your commentary.
Please allow me to provide some much-needed context once again.


Warren Buffett talking to MBA students:

"If you are not a professional investor; if your goal is not to manage in such a way that you get a significantly better return than the world,
then I believe in extreme diversification.
I believe that 98 or 99 percent —maybe more than 99 percent—of people who invest should extensively diversify and not trade.
That leads them to an index fund with very low costs.
All they’re going to do is own a part of America.
They’ve made a decision that owning a part of America is worthwhile.
I don’t quarrel with that at all. That is the way they should approach it."

financinglife.org/learn-how-to-invest/warren-buffett-on-diversification/

Responses (colored green) are below.

You missed twice:
1) I didn't post anything about my style, so why did you mention it?
    I have general knowledge regarding differences between your investment style and Mr. Buffett's style.
    The two styles are very dissimilar.
    Nevertheless, you repeatedly misappropriate his "quote" out of context.
    Why do you seemingly need to quote Buffett to make your arguments?       
 
2) The fund managers are professional investors. IMO, they did the right thing because the numbers show it.
    Mr. Buffett would consider fund managers to be professional investors.
    He stated that professional investors' portfolios should not be diversified.
    However, Buffett thinks that the vast majority of investors (98% or 99%) should broadly diversify and not trade. 
    When you invoke Buffett by quoting “diversification is a protection against ignorance", the preceding integral assertion is omitted.
       
BTW, "pure" diversifiers will tell you that the SP500 isn't enough, you got to own MC+SC+international+others. In retirement, most should own some bonds.
Sure, I agree that owning only the S&P 500 is not true diversification.

[FD1000]

Jun 4, 2023 17:18:01 GMT roi2020 said:

Jun 4, 2023 10:19:06 GMT FD1000 said:

Responses (colored green) are below.

You missed twice:
1) I didn't post anything about my style, so why did you mention it?
    I have general knowledge regarding differences between your investment style and Mr. Buffett's style.
    The two styles are very dissimilar.
    Nevertheless, you repeatedly misappropriate his "quote" out of context which is very misleading.
    Why do you seemingly need to quote Buffett to make your arguments?       
 
2) The fund managers are professional investors. IMO, they did the right thing because the numbers show it.
    Mr. Buffett would consider fund managers to be professional investors.
    He stated that professional investors' portfolios should not be diversified.
    However, Buffett thinks that the vast majority of investors (98% or 99%) should broadly diversify and not trade. 
    When you invoke Buffett by quoting “diversification is a protection against ignorance", the preceding integral assertion is omitted.
       
BTW, "pure" diversifiers will tell you that the SP500 isn't enough, you got to own MC+SC+international+others. In retirement, most should own some bonds.
Sure, I agree that owning only the S&P 500 is not true diversification.

Why do I have to repeat myself? You missed on both
1) It's amazing, if I don't talk about my style, someone will complain and bring it up. When I talk about my style, someone will complain that I bring it up.
2) Why not acknowledge I was right, instead of repeating it.. 

Lastly, anybody who are on these boards, know what I do, nothing is a "secret" or misleading. I have been posting about 15 years on several places. It's on my site too(link).I believe that concentration within the number of funds + what I do (using funds/categories that work lately) have the similar results as concentration in stocks. If you know what you are doing, you need 1-2, maybe 3 funds.

Example: in 2022 and the beginning of 2023, I used/traded only HY Muni funds, 2 each time.

[roi2020]

Jun 4, 2023 17:32:51 GMT FD1000 said:

Jun 4, 2023 17:18:01 GMT roi2020 said:

Why do I have to repeat myself? You missed on both

1) It's amazing, if I don't talk about my style, someone will complain and bring it up. When I talk about my style, someone will complain that I bring it up.
    Your style was mentioned because it is very different than Mr. Buffett's style.
    Why quote Buffett at all when you have opposing styles?

2) Why repeat what I said already about pro managers if I was right.
    You believe you're always right, don't you? Please read my response again carefully. 
    You never stated that the vast majority of investors should broadly diversify and not trade.

Lastly, anybody who are on these boards, know what I do, nothing is a "secret" or misleading.
Your misappropriation of the Buffett "quote" (when taken at face value) is very misleading.
That's what I was referring to as being misleading.

I believe that concentration within the number of funds + what I do (using funds/categories that work lately) has the similar results as concentration in stocks. If you know what you are doing, you need 1-2, maybe 3 funds.

Example: in 2022 and the beginning of 2023, I used/traded only HY Muni funds, 2 each time.
This is irrelevant information in the context of this discussion.