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Strategies & Market Trends : Value Investing
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To: E_K_S who wrote (47455)4/14/2012 4:08:47 PM
From: Mattyice  Read Replies (1) of 78748
 
EK$

I love your basket approach to these companies. And been considering the same kind of positioning in my portfolio

For me, Its hard for me to explain... and i have had this theory on the E&P companies.... IF you are going to invest in a tech company (or E&P) you have to extend your investments across a wide moat, you cant just be selective and choosing one.... you have to essentially spread your risk out while at the same time hoping that one or two of the investments pays so exponentially large that it pays for your duds that didnt work out, if you only invest in one or two your risk increases exponentially but your return profile doesn't match the risk.....

That is why i have been hesitant for to invest in the tech companies, instead of investing in a couple of E&P companies because of the risk i would rather spread the same dollar amount across 10-15 companies.

The value is in the sector and certain regions, not in the names - it is just to difficult to pick a couple and hope for the best.
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