Thanks for the reply, Paul. I found your comments informative. In general, I'm hesitant to invest in mega-caps because it is the land of marginal situations. But, I do agree that there are compelling opportunities to be found, as you mention, GOOG. But the catalyst has to be very strong.
When I'm making bets on broad market moves, I usually play the indexes through ETFs. With all the various ETFs, you can find some pretty interesting strategies to play. Other than that, I love a strong catalyst, which usually takes a lot of digging.
Do you have any thoughts on diversification? I remember watching one fund manager on CNBC, who was labled a 'guru', talk about the winners in his portfolio. I looked the portfolio up, and they guy had like 200 stocks in it. It's borderline criminal for an asset manager to charge for 'managing' 200 stocks. I think 10 stocks at most. After that, statistical studies show that the benefits of diversification start to decline. |
