January 2007, I was eating dinner, with the head's of the company I worked for--president, CFO, and foreman, at some roadside kuntry cafe, hole-hole-in-the-wall in south central Texas. I used this opportunity to pick their brains.
Since I had made my first stock trade a month ago, I was ready to make another one, but what? I had been reading everything I could that came across MSN Money, or Yahoo Finance. I read articles predicting the split of stocks such as XOM, and LMT.
Sipping some sweet tea, I asked the question, "Should I buy Lockheed Martin?"
Our CFO, a former VP from Lehman Brothers, advised me against it. At that time I had one major holding. One wrong move and my portfolio would become lopsided and a bad stock would drag whatever earnings I had, down the tubes. He advised me to find a Mutual Fund to balance things out.
I followed his advice of modern portfolio management: diversify so the losers don't bring you down. On a recommendation from my former writing professor and author of Investing Naked, I bought ADVDX. I decided on this one because of its, at that time, dividend yield.
And for a while, the fund did just fine.
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