SilentCal comments on Open Thread August 31 - September 6 - Less Wrong Discussion
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Is there absolute utilitty maximisation in portfolio diversification or is that just a risk control mechanism? Could I pick one random stock and put a whole lot of money in it? I suspect I may be commiting the law of large numbers here (or the gambler's fallacy).
If you're not familiar with it, you should check out www.bogleheads.com for investment/finance advice.
(Not trying to discourage you from discussing this here... just that if you don't know bogleheads, it's quite valuable)