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Technology Stocks : Ultratech Stepper
UTEK 30.230.0%Jun 5 5:00 PM EST

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To: Mark Ableson who wrote (1573)10/22/1997 9:18:00 PM
From: William L. Oppenheim  Read Replies (1) of 3696
 
I am amazed at the number of responses that my remark prompted. I suppose that different folks are in different stages of their lives, and therefore their view of risk is also quite different. I wasn't aware that Berkshire Hathaway had more than 20% of their assets in any one stock. I believe that older folks are without time to recover from a bad mistake or two are more likely to want to stay very diversified, while the young turks out there who are sure they have it figured out are less likely to seek such diversification. But, I really wasn't referring to risk tolerence. In the tech sector, it is possible to stay very diversified, but still have a very high risk/high return portfolio (say by keeping very high PE stocks), so I still don't understand why people want to put all their eggs in the same basket. There are a lot of high tech stocks with promising returns out there. One would not compromise their reward potential by diversifying--in fact studies have shown they could get the same return with less risk.
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