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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Lars who wrote (9137)	10/8/1999 7:49:00 AM
From: MrGreenJeans	Read Replies (2) \| Respond to of 15132

Lars I don't think a person should load up on any one particular stock There was a person who once said "when a compelling investment comes along you better not be sitting in the corner reading a book on diversification." Lars, any idea who that person was? Hint: his initials are WB. I generally agree that most people should follow the 4% in one equity risk rule. However, with the use of hedging techniques the more sophisticated and risk oriented investor can have a concentrated position in a stock with puts in place for downside protection in order to hold a more concentrated position. On a more controversial note someone pointed out to me that the wealthiest investors seemed to hold less diverse more concentrated positions. While intellectually I realize what the risks are I often debate, without conclusion, in my own mind if this is the best investment strategy. On a personal note my portfolio is heavily weighted, for better or worse, in Vodafone so I have over the years often thought of WB's comment with a different perspective.