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Technology Stocks : Oak Technology (OAKT)
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To: Neal Lipschutz who wrote (3525)11/10/1997 10:25:00 AM
From: gregor  Read Replies (2) of 4335
 
Dear Neal :

It's been a few years since I ran the numbers but on the subject of DIVERSITY.

If you own one stock the volatility is 7 or 8 times the market. Two stocks will drop that down to 5 or 6 times the market. Three stocks 3 or 4 times the market. By the time you own 7 or 8 stocks it is about 1.5 times the makket and if you keep track of say the Berger 100 fund it would almost equal the market in volatility risk; not withstanding that the fund manager may beat the averages by skill.

If you decide to "tuff it out" I hope you are a sound sleeper, but as soon as possible you should at least diversify to at least 5 or 6 stocks. Personally , that is what I do but also, most of my liquid assets are in mutual funds.................gregor
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