28 August 2005

If I were to be honest with myself, I'd have to confess that my non-literary interests these days consist mostly of 1) finance and 2) celebrity gossip. As a result, I love reading about the investment portfolios of famous people. Take this article from Slate, for instance, about the investment holdings of John Roberts:
46 common stocks (including Coke, Merck, and AT&T)
31 mutual funds
four money market funds
three bank accounts
one exchange-traded fund
one real-estate investment trust
one coal unit trust
one-eighth share of a cottage in Limerick, Ireland
I love the "coal unit trust," which is just the sort of goofy diversifying investment that I'd buy if I had $3 million to invest. Unfortunately, as Slate puts it, "Roberts' investment decisions do not show evidence of the rigorous, summa cum laude analytical skill that he is said to evince on the legal side….A wise investment adviser would tell Roberts to sell all his stocks and buy one low-cost index fund instead."

Still, the article concludes that "On the whole, Roberts' investment choices suggest that his financial character is much like his legal one. In investing, he tends to accept prevailing conventional wisdom—which, in the case of the financial markets, often changes and is often wrong—and to apply it with above-average competence." In other words, his portfolio is quite, er, conservative. Make of that what you will.

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