However, few sucessful investors would disagree that the best risk-adjusted portfolio returns are almost never born of repeating the same stock selection decisions in a single asset class at all times. It goes without saying that the better approach is to remain nimble in allocation among asset classes and to approach issue selection by employing several strategies or tactical adjustments in issue selection. Based on your description of your one show pony, I can’t fathom the simplistic notions that would guide a professional to persist as you described.

The better way of generating “good returns in cash generating businesses” is to employ a number of your best ideas concurrently. I am not implying that the best practice is to persistently execute the same strategies over and over, just as long as you mix enough of them together.

My experience tells me that the person satisfied with a vague and absurdly simplistic approach to investing–whether this approach sounds of merely holding high yielding equities or whether it is couched as having the wisdom to invest in those “businesses that grow in value”–share something in common. Neither of the two know much about investing.

I don’t think BSC is going to go broke. I like the firm, and would be a buyer of the equity on weakness. But one risk that many don’t realize they are taking with ETNs is default risk. Just be aware of it.

You think there’s a chance one of the majors might default on one or more of their ETNs?