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Technology Stocks : Western Digital (WDC)
WDC 157.75+1.5%Nov 26 3:59 PM EST

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To: Pierre-X who wrote (7986)12/3/1997 7:06:00 PM
From: still learning  Read Replies (1) of 11057
 
Off Topic re 2 stocks

For the record -- since I was tagged with the "undiversified" label , too -- I don't espouse holding only 2 stocks. I think 9 may be too few overall. But that doesn't answer the questions of whether it's wise to concentrate a greater % (whatever your tase dictates) in 2-4 of your holdings. I do think this is a good strategy -- to overweight where you expect the greatest return, even if you are buying an entire sector.

Also, re gambling, we could have a long discussion on that one. Pierre-X's comments on tax benefits and weighting of risk are very correct. That said, all investing is a balancing of risk/reward -- in other words it's all gambling to some extent. The only difference is the amount of risk we are each willing to put up with and how much reward we actually end up getting to compensate for that risk.

Clearly owning only 2 stocks is on the high end of the scale. Even as a higher risk investor, that's too rich for my blood.
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