you should take advice from the Wise Men here, not the wise guys, but here's my two cents anyway...
I see one significant upside and one significant down side to your proposed diversification plan.
The upside is that it would allow you to form little "baskets" in sectors where you don't feel equipped to pick a single winner (either now or ever). This would enable you to make subsector bets (say, "fiber optics" or "storage" or "wireless" or "networking") rather than company bets, an approach to tech investing that you may feel is safer or easier.
The downside is that it would hinder your ability to really get to know your companies as thoroughly as possible.
Me, I see that downside as outweighing that upside, because the only thing that has allowed me to hold on firmly and (relatively) calmly during these last few months has been my great comfort level with each and every company I own (QCOM, JDSU, GMST, SEBL, NTAP, ITWO, and CREE, plus a couple of trace elements). That comfort, in turn, has been derived from obsessively following each company's fortunes, industry, management, etc. The more companies you have, the more difficult such DD becomes, and the more likely you are to either miss the signs of some impending disaster or sell out during a FUD attack because your confidence has been shattered.
tekboy/Ares@shouldneverhavediversifiedintoCTXS.pov |
