ed, are there better places to diversify?
Owning one stock is not diversification! A diversified portfolio should have 12 - 15 stocks in a variety of industries. My portfolio is not diversified (it is tech-laden), but I do own companies like GP, T, TYC, VISX and VOD in addition to companies like AOL, BMCS, IBM, LU, and VTSS. I think the key is to own the most promising companies in a variety of sectors.
but what of the psychology of those who bought in the high forties, and need a year plus to get above water?
I frankly have trouble feeling too sorry for them. It should have been clear to a blind man that DELL prices in the mid 50's were simply unsustainable given consensus analysts' projections. I know that analysts are routinely bad-mouthed on this thread, but they were telling us quite a bit about Dell's long-term growth prospects given its then current business model. Folks who were pouring money into Dell at those levels simply were not paying attention. And people on this thread, like LongOnDell, Gregory Mullineaux and me (among others), were sounding warning bells while momentum guys like Voltaire were going crazy. I think most of those people are long gone. I think there is an important lesson in all of this -- don't ignore fundamentals. When momentum "investors" get involved huge market inefficiencies appear. The same thing happened when AOL went to $175.
I could go on and on, but I think that the thread already knows what I think.
TTFN,
CTC
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