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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: mauser96 who wrote (6529)	9/18/1999 9:55:00 AM
From: Mike Buckley	Read Replies (3) \| Respond to of 54805

Lucius, It's nice to see you again. I wish you hung around here more often. Any stock that has "more than doubled since last spring" only appears to be low risk in retrospect. I understand your point, but it reminds me of one of my personal accomplishments as an investor. (There aren't a lot so I relish the few. :) After time, I have mastered the discipline of completely ignoring what today's price is relative to yesterday's price. The price of a stock relative to a former price is simply not a factor. --Mike Buckley

To: mauser96 who wrote (6529)	9/18/1999 2:56:00 PM
From: chaz	Read Replies (2) \| Respond to of 54805

RE: Diversification Headline in Saturday's St. Pete Times Business Section To generate more wealth, spread it around liberally Gist of the article is that sophisticated safe investors hold 25 stocks, the "commonly suggested" minimum,... "academic research suggests the smartest strategy is to buy a truckload of different stocks." The author is completely out of touch. He's quoting fund managers....those are the guys who are, along with house brokers, terrified that individual investors might have individual brains, and worse, might begin to use them. Typical in the article, and I quote: "If the market averages are driven by a small number of high flying stocks, you could try to pick these stocks. But the odds suggest you will fail." I am sending this gentleman the following: 1) copy of his article 2) copy of this post 3) copy of Gorilla Game (paperback) 4) print of our two portfolios 5) get well card Aside: The other day, swapping PM's with Lindy, he reminded me of something that is worth passing along. In 1993 I studied and sat for the Series 7 (passed in the high 80's BTW). One of the tutors in the crash course spent some time telling us about "account management"....and said that for each $1 million in account equity, we should earn about $100k. We'd do that by pushing buys and sells. In other words, forget the customer, just churn the money. The more diversified the account, the more likely it is for that to happen, and, your "management" will expect that of you! Diversification lives....it's the BIG LIE investors have heard for years, mostly from those who stand to benefit quickest by it's acceptance.