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Motley Fool Answers

Putting the Fun in Hedge Funds

Motley Fool Answers

The Motley Fool

Taxes, Saving, Money, Investing, Planning, Retirement, Personalfinance, Finance, Education, Business

4.4823 Ratings

🗓️ 30 August 2016

⏱️ 29 minutes

🧾️ Download transcript

Summary

Hedge Funds! What are they? How do they work? Are they worth it? Ron Gross is our tour guide as we venture into the pricey, exclusive, and loosely-regulated world of Hedge Funds. We'll also answer your question about diversifying your portfolio if you only own 2 stocks.

Transcript

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0:00.0

This is Motley Full Answers. I'm Alison Southwick, and I'm joined as always by Robert Brokamp,

0:07.8

personal finance expert here at the Motley Fool. Hi, bro. How are you?

0:11.5

Just fine. And how are you, Allison?

0:13.3

I'm good. Now, for the last couple weeks, bro, you have regaled us with your list of the best

0:19.0

investors of all time, most of which ran hedge funds, which prompted

0:23.4

you to say things like, so the average investor can't really do what they do.

0:27.1

Did you say it like that?

0:29.1

I say it. That's what I sound like on the radio.

0:31.8

You wish you sound like that.

0:34.5

So I want to know what is it that hedge fund managers do? And what can I do to invest like

0:39.7

the pro? And do I even want to? So that's why we brought Ron Gross in to help us answer

0:43.8

those questions. Hi, Ron. Hey, good to be here. How are you? It's great to have you back. So,

0:48.0

all that and more on this week's episode of Motleyful Answers. All right, it's time for answers. Answers! And today's question comes from Bud.

0:56.0

Bud writes, about a year ago, I put some money into the market, but only purchased two

1:00.0

stocks, Apple and Under Armour.

1:02.0

Consequently, now that I realize the error of my ways by ignoring the principle of diversification,

1:06.0

I am wondering if you think I should sell a portion of my two previous purchases in order

1:10.0

to purchase other companies, thus more favorably rounding out my modest portfolio.

1:14.7

Or should I just stay Pat and make other purchases down the road as I'm capable?

1:18.8

I'm definitely a buy-and-hold kind of guy.

1:21.5

Well, that's our kind of guy.

1:22.4

Absolutely.

...

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