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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Fred Davis who wrote (22427)4/7/2000 11:37:00 PM
From: StockHawk  Read Replies (2) of 54805
 
>> find myself having a desire to own more companies which spreads my "small fry" holdings out to owning a very small position in each of these great companies.<<

Fred, consider this statement:

Diversification is a strategy used to maintain wealth, concentration is a strategy used to create wealth.

It is very tempting to add more and more names to one's portfolio, and no one wants to miss out on the next great one, but IMHO most people would probably be better off with fewer stocks. It is easier to learn about and monitor fewer companies, and having a good understanding of a company gives you the fortitude to hold it during a downturn.

I hope this helps a little.

StockHawk
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