"It’s not whether you’re right or wrong that’s important, but how much money you make when you are right and how much you lose when you’re wrong."
My investment philosophy has been greatly influenced by a couple of major events over the past 20 years. The Asian Financial Crisis in 1997 made it clear to me that diversification was not 3 mutual funds. I needed to find alternative investments that did not correlate to the stock market. Today this a core belief in what I do. The run-up in stock prices in 1999 that saw the NASDAQ 100 index go up 101.95% and then plunge -36.84% in 2000, -32.65% in 2001, and -37.85% in 2002 also had a huge impact on me. To try and minimize losing money became another core belief. In all my portfolios today, you will see broad diversification among asset classes and a gravitation towards money managers or strategies that attempt to minimize the downside risk that is inherent with investing.