Strategy Intermediate: Core vs. Noncore Investments

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1.
Core companies tend to be ________.
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Financially healthy. This feature helps make them worthy of being core stocks.
2.
Core holdings should take up _______ of your portfolio.
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At least two-thirds. As a rule, at least two-thirds is usually advised.
3.
All investors should have the same size core holding.
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False. Though different investors and experts will disagree, there is no one size for everyone.
4.
How big should your core be, at the very least?
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Half of your portfolio. While your entire portfolio can be made up of core investments, it doesnt have to be. But holding just 25% of your portfolio in core holdings could lead to more thrills than your portfolio can stand.
5.
Should a bond fund be a core holding for you?
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Maybe. It depends on your asset allocation. When it comes to bonds, theres no one-size-fits-all answer. It all depends on your asset allocation.