Back in July, I posted about reorganizing my 401k distribution and setting up a Roth IRA. In case you missed it, you can find it HERE. Since then, I have been funding my Roth and trying to locate a decent mutual fund to put my money into. A lot of people will tell you to diversify your portfolio, personally, I think those people are off. My investment strategy is TO MAKE MONEY. Lots of it, in a short period of time. I have found that the best way to do this is NOT to diversify your portfolio.

My research shows that mutual funds in international stocks is where the money is at. Countries around the world are joining modernized society, and as they do, investors appear to be on board. It seems to me that a good portion of the world is now catching up to the US technologically and otherwise, so they are sort of where we were at a while back when the market here was so awesome. This data, combined with fact that we are still at war, which makes investors here scared, makes international stocks an incredible value right now.

So I put all my money, every single penny of investment money I own, into an international mutual fund. The fund is the Thornburg International Value Fund (TGVAX). I have made so much money off of this fund that it is just ridiculous. The only catch when I converted to the Roth, is that the Thornburg requires a $2000 initial investment inside an IRA. Since I do not have that much in the Roth yet, I was forced to find another fund that was just as good, with a low buy-in.

After many long nights of searching, I came across the Pax World Growth Fund (PXWGX). The fund is very similar to the Thornburg in that it is an international fund, but the buy-in for an IRA is $0, and the minimum subsequent investment is also $0. Even outside of an IRA, the minimum is only $250, with a $50 subsequent. That is pretty damn good.

So there you have it. My two investments, both of which are in the same sector, and some of the exact same stocks. Once I hit the 2K with the PXWGX, I will transfer the balance into the TGVAX, just like all my 401k investment.

So, you may be asking, why is it so great to put all your eggs in one basket like that? Most people, seemingly on the advice of financial advisers, or otherwise, have always been told to just put the money in and basically ignore it, let it build, then you will be rich when you are old. This is fucking ridiculous. That would be like just paying your credit cards bills each month, without even looking at them (which I used to do!). If you invested a large some of money into a stock, you would check the stock price each and every day, so you could get out if you needed to, and minimize loss. Well, your 401k is basically the same thing.

So, I not only check the price of the funds each and every day, I also compare the daily results to other mutual funds, stocks, indexes, and whatnot. This keeps me one step ahead of the game at all times, and determine cutoff prices where I may need to move things around a bit. So far this has worked out marvelously. For example, during the most recent issues with housing mortgage problems, everyone suffered, but the international stocks bounced right back, and actually busted out quite a bit afterwards and went on a huge price spike, whereas some of the large US based stocks did not. Here is a perfect example of what I am talking about:

http://finance.yahoo.com/q/bc?s=TGVAX&t=6m&l=on&z=m&q=l&c=msft

If you look at this chart, you can see that after the housing trouble that plagued the market, Microsoft stock recovered from its -2.5%, and bounced back up to a little over 5%, which is fantastic, but in that same time period, TGVAX bounced from its low of around 5% (pretty good for a crisis time in our markets), up to around 22.5%!!!. Now, someone with a well diversified portfolio would not have benefited much in this scenario, but I did. If you dump all your money into anything, diversified or not, and don't pay attention, you pretty much deserve to lose all your money.

Ok, this is too long already, I could go on for hours and hours. Just do yourself a favor or two. Put your money into international stocks for now, and for shit's sake, UN-DIVERSIFY YOUR PORTFOLIO!