Everybody knows that you should not put all of your money on a single stock. Whatever can go wrong probably will happen. So, we need strict allocation plans across different sectors and different types of investments. Harry Brown wrote a famous book about such allocations. If I recall correctly, it was 25% gold, 25% bonds, 25% stocks, and 25% cash. Harry's strategy worked great for years.
However, times have changed since the 90s and early 2000s. Gold is basically dead now, and bonds are reportedly in a bubble worse than stocks. I still think people will buy long term government bonds (TLT) in a bear market, though. Anyway, we need to have a good allocation plan that will work in bull and bear markets. At my BooksAndStocks
blog, I try to stay up with good asset allocation plans, and I have listed some of the best articles below so that you can follow the links and learn about plans that may work for you. I have also listed two super stocks to hold, but neither of these stocks should be more than 25% of your portfolio.