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Technology Stocks : Dell Technologies Inc.
DELL 121.05+4.9%Feb 6 9:30 AM EST

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To: Tweaker who wrote (47183)6/11/1998 1:37:00 PM
From: Chuzzlewit  Read Replies (1) of 176388
 
Tweaker, I don't think anybody has ever argued that diversification enhances profits. Quite the contrary. The argument is that diversification limits risk. The idea is to hold a basket of risky stocks, and the business risk in one stock doing badly (INTC for example) is spread through the portfolio to make the total risk more tolerable. In fact, financial analysts refer to this kind of risk as diversifiable. As a rule of thumb you get the greatest tradeoff between diversification and practicality with around 12 stocks in your portfolio.

TTFN,
CTC
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