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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Rillinois who wrote (3831)3/6/1998 8:37:00 PM
From: Bill Shepherd  Read Replies (1) of 42834
 
Re: they just might think twice before following his next stock pick.

A ringing endorsement for limiting your exposure to 4% of total equities, on a cost basis. Rillinois, your points are good, and have opened my eyes some.

Let's continue with the math, however. If someone had bought KMAG, and limited themselves to 4%, and experienced the 59% loss you describe, their overall loss would be about 2.4% of their portfolio's value. This may be an acceptable risk to some investors, especially if they bought Intel, Microsoft, and Vodefone, for example (other BB recommendations.)

I'd like to see all stock-pickers disclose their bad picks as well as their winners.

Regards... Bill S
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