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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Devil's Advocate who wrote (8936)	7/30/1999 1:34:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 21876

Devil, Quite true! I believe that there were some studies about 15 years ago that claimed that it was possible to have an almost "efficient portfolio" with around 15-20 stocks. In the sense that you are talking about a diversified portfolio being efficient, you are quite right. I am not at all sure that such a portfolio could be designed around growth companies. However, my point to MMW was that it is foolish to put all of your eggs in one basket in the tech sector -- the business risk is much too high. I read an interesting article in the June issue of Atlantic Monthly by Lester Thurow, which discussed the Third Industrial Revolution at some length. One of his theses is that knowledge based industries are the driving force behind the economy, and are likely to remain so for the foreseeable future. Much of my portfolio is designed to take advantage of that trend. I do not pretend that it is without considerable and undiversified business risk -- in this case the business risk of the entire telecommunications/networking sector. Now if you could tell me of other sectors that offer high growth over the next decade I would jump all over them <VBG>. TTFN, CTC