{"id":29385,"date":"2012-04-30T11:14:36","date_gmt":"2012-04-30T15:14:36","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/04\/dont-put-all-your-eggs-in-aapl-and-xom\/"},"modified":"2012-04-30T11:14:36","modified_gmt":"2012-04-30T15:14:36","slug":"dont-put-all-your-eggs-in-aapl-and-xom","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/04\/30\/dont-put-all-your-eggs-in-aapl-and-xom\/","title":{"rendered":"Don\u2019t Put All Your Eggs in AAPL and XOM"},"content":{"rendered":"

Article by Investment U<\/a> <\/p>\n

\"Don't<\/p>\n

Todd Schoenberger recommends investing in just two stocks \u2013 Apple (Nasdaq: AAPL) and Exxon Mobil (NYSE: XOM). This is a very bad idea.<\/p>\n<\/div>\n

“Nobody ever got rich off of asset allocation.\u201d<\/em><\/p>\n

That\u2019s what Todd Schoenberger, Managing Principal at The BlackBay Group, told Yahoo!<\/em> Finance readers recently.<\/p>\n

Instead, he advises, it\u2019s much better to hold just two stock investments \u2013 specifically Apple Inc.<\/strong> (Nasdaq: AAPL<\/a>) and Exxon Mobil Corporation<\/strong> (NYSE: XOM<\/a>).<\/p>\n

Exxon, after all, has $60 billion in cash at its disposal and Apple has $110 billion, more than enough to let both of them coast for some time. Similarly, they\u2019re both stellar companies with impressive assets to offer investors\u2026 from Apple\u2019s amazing stock price run-up over the years to Exxon\u2019s steady dividend payouts.<\/p>\n

But what he forgets is that there is no \u201csure thing\u201d investment in life.<\/p>\n

Sure, both companies have performed excessively well so far. But the past can only offer so much insight into the future \u2013 a tough lesson investors often have to learn the hard way.<\/p>\n

I wonder if Todd was advising people back in 1999 that the only stocks they needed were Enron and RadioShack<\/strong> (NYSE: RSH<\/a>)\u2026<\/p>\n

Even a well-educated, highly experienced professional can get it wrong now and again. I would suggest Todd pick up a copy of William Bernstein\u2019s book The Intelligent Asset Allocator<\/em> or Alexander Green\u2019s bestseller The Gone Fishin\u2019 Portfolio<\/a><\/em> \u2013 based on Dr. Harold Markowitz\u2019s Nobel Prize-winning Portfolio Theory.<\/p>\n

Politics, Disasters, Errors and Lies<\/strong><\/h2>\n

People have always wanted to believe in a sure thing, something to keep them safe and sound in every possible situation that might arise. It\u2019s perfectly natural to crave that kind of security, but it\u2019s also completely unrealistic in most areas of life, including \u2013 and possibly even especially \u2013 in the stock market.<\/p>\n

History is filled with examples of people who desperately wanted to think otherwise, and ended up crashing and burning. Here are just some of the more recent instances:<\/p>\n