Kasper,I just wanted to comment on the benefits of...

Kasper,

I just wanted to comment on the benefits of diversification as evidenced by my own share portfolio. Prior to March this year I only held BBI and BBP and have returns of -68% for the former and +0.81% for the latter. That is in stark contrast to my recent investment in a portfolio of REITS which have returned the following thus far:

LLP 100%
IIF 114%
MOF 122%
MCW 170%
AEZ 175%
ILF 250%
MDT 300%

I am certainly sleeping a lot easier at night having seven REITs than just having one or two or none at all.

Diversification has a lot more to do with the companies you invest in than the concept itself as to how successful or unsuccessful your share portfolio turns out to be I think, although I didn't have any choice but to invest in REITs in March given how cheap they were and given my limited capital at the time.

Going forward I would ideally like to invest in multiple sectors at the same time rather than invest entirely in the single sector however. Still, so far so good.

*There's a longer, more detailed post on General: Share Portfolio thread*