Fannie Mae: Followup to Five Stock Picking Ideas

Back in June, I had a post entitled Five Stock Picking Ideas, which mentioned 5 stock picks from Forbes columnist Lisa Hess.

One of her picks had been Fannie Mae.

Needless to say, in the latest edition of Forbes, she now calls it "one of my more spectacularly awful recommendations".

This is an example of why diversification is an important part of investing.

My stock trading system preaches diversification.

You can never know what will happen with any individual stock, that is why my system uses my mathematical formula to separately trade multiple stocks within my portfolio.