The Stable Portfolio

The Stable Portfolio: Why You Need Both Clydesdales and Thoroughbreds

Picture Budweiser’s iconic Clydesdales — powerful, steady, and able to pull thousands of pounds. Now imagine the sleek Kentucky Derby thoroughbred — all speed and adrenaline. Your portfolio needs both. A Clydesdale could run a race, but not fast; a thoroughbred could pull weight, but not for long.

I follow horse racing religiously (without betting — the sport’s dark side troubles me). My favorite moment remains Mine That Bird’s 2009 upset victory, a 50-1 longshot seizing the moment. That race taught me something essential: success requires both steady workhorses and opportunistic thoroughbreds. Investing isn’t a horse race, Brenda* — it’s about building the right stable.

Nine Lessons from the Track

1. Stability Enables Opportunity
Thoroughbreds create excitement, but Clydesdales generate consistent power. Core holdings should stabilize your portfolio while growth positions capture opportunity.

2.Risk Tolerance Defines Your Race
High risk doesn’t always mean high reward — and wealthy investors often need less risk, not more. Understand your sleep-at-night factor before chasing the next50-1 shot.

3. Yesterday’s Winner, Today’s Loser
Past performance isn’t a guarantee. If you catch yourself checking one stock five times a day, it may be time to trim.

4. Market Conditions Change Everything
Tracks get muddy, favorites stumble. Diversify styles — growth, value, large, small — so you’re ready for any market.

5. Jockeys Multiply Success
Even the best horse needs a skilled jockey. You’ve built wealth in your field —don’t spend all your energy trying to master markets too.

6. Due Diligence Beats Intuition
Successful bettors study the data. Successful investors do too. Six minutes of research won’t cut it — neither will gut feeling alone.

7. Concentration Builds Wealth, Diversification Preserves It
Many fortunes are made by focusing — but kept by spreading risk. Preserve what you’ve built by diversifying wisely.

8. Emotions Are Expensive
Fear and greed cost more than fees and taxes combined. Write an investment policy and follow it — especially when you don’t feel like it.

9. Consensus Creates Opportunity
When everyone is betting on the favorite, long shots may offer value. Thoughtful contrarianism can uncover hidden opportunities.

Build Your Stable

Wealth building is less about winning one race and more about running the whole season. Your portfolio needs both the Clydesdales that pull the wagon and the thoroughbreds that sprint ahead.

Start by assessing your current mix, filling in the gaps, rebalancing regularly, and partnering with professionals who can keep your stable on track. Finish well, not just first — that’s how you end up pulling a Secretariat and leaving the field behind.