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Technology Stocks : WDC/Sandisk Corporation
WDC 157.75+0.4%Nov 14 9:30 AM EST

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To: Ausdauer who wrote (4566)1/28/1999 8:12:00 PM
From: Craig Freeman  Read Replies (1) of 60323
 
Ausdauer, SNDK has a "buy" recommendation from several analysts. But I don't recall a single one suggesting that we risk bankruptcy to own this stock.

Prudent investing requires that one build a balanced, diversified portfolio before allocating a minor portion to "risk capital". In this way, you have a reasonable probability of increasing your overall rate of return without incurring substantial losses. On the other hand, undiversified, leveraged investing in volatile issues is more akin to betting on the lottery than investing. A few people will become very rich this way but the vast majority will lose all.

If the definition of "paranoia" is prudence, then I suppose I'm paranoid. And maybe just a tad schizphrenic too. Because despite my knowing the rules all too well, it's nice to see someone break them and get away with it. It couldn't have happened to a nicer guy.

Craig

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