|Even he is not always right (Apple Insider photo)|
But even when I became a decent stock picker I still tended to put too much in one basket. Even the best investors in the world don't hit it out of the park 10 out of 10 times; experience has taught them how to manage portfolio risk even though they're right more often than not.
The WSJ has a simple baseball simulation game in which the player wins 57% of the time and gets paid 1 for 1; if it were a true game he would have to bet nearly $3 to win $2. He has a $100 stake, and there are 10 rounds of bets. What is the strategy? (Test yourself by clicking the link above.)