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Pastimes : How to best deal with KOOKS at this web site

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To: Iceberg who wrote (601)7/5/1997 10:12:00 PM
From: Bill Ulrich   of 1894
 
Hi Ice, re: diversification

Actually, you're in good company,

<...I don't like to diversify, as financial experts recommend.
Mainly because as you diversify, you reduce your risk - but you
also reduce the potential for big gains. I guess it's all a matter
of risk tolerance and adopting an approach that seems comfortable.
Being from Texas, I come from an environment where risk is well tolerated...>

It is becoming increasingly popular for financial advisors to warn
against over-disversification. Diversifying was a popular
concept in the 80s, but as more money started soaking into the
mutual funds -- that is to say, people started purchasing shares
of a dozen mutual funds, who in turn purchased shares of several
dozen companies -- then people started noticing really diluted
returns (albeit with diluted risk).

I've soaked my money into a whopping 3 issues this year.
Whilst I have yet to perfect the Texas drawl, perhaps I have
taken on an affectation of its spirit.

Ducks and geese will scurry, Scorpions to bury...
Oh wait, that's 'Oklahoma', sorry...no offense.

-MrB
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