Thread...."one trick ponies"
A person who puts nearly his/her entire portfolio into one stock should be especially worried about a one-trick pony.
--Mike Buckley
This thread has been valuable, in part, for crystallizing investing theories c/w the Gorilla Game, and factoring in how individuals, usually with long hard-won experience, choose to invest.
I'd like to hear what the thread thinks of one-trick ponies.
1. What is a one-trick pony?
For example, I pointed out a month ago when comparing Iomega vs. Rambus that Iomega was portable storage that was applied to a relatively small minority of PCs; whereas Rambus was memory design, but across a broad range of products, incl. PCs, but also video games, printers, HDTV, etc. Likewise, Qcom is CDMA, but spread across cell phones, satellite, handheld devices and perhaps desktop PCs?
2. Also, are one trick ponies bad? Would it have been wrong to invest in Microsoft in the 80s when MSFT only did operating systems software?
3. What are the pros and cons of one-trick ponies?
Just looking to learn what threadmates' opinions are here. Comments?????
Stan |
