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

To: Uncle Frank who wrote (10764)	11/20/1999 12:32:00 PM
From: Eric L	Respond to of 54805

Frank, << massive overweighting to qcom (>50%). Obviously, I'm not going to do anything before the split >> I don't blame you and if I were in your shoes (I'm only 26% Q but I'm right where I want to be) I think I would stay at least at 50% Q for first quarter. I think there will be a great run after the split (JMO). << plans for diversification >> Your qqq holding makes a lot of sense. I'm thinking of parking some here myself. Sensible portfolio, IMO, but without FIBER you will be undernourished <g> ... and when it comes to fiber there is ____ (fill in the blanks). - Eric -

To: Uncle Frank who wrote (10764)	11/20/1999 2:06:00 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Frank, I plan to limit myself to 6 stocks, which I believe provides 90% of the insurance of a 20 stock portfolio. I read a long time ago that 8 diversified stocks provide 90% of the diversification of a 16-stock portfolio. Aside from that minor difference in stats, there are other issues worth considering with regard to diversification. Of your six positions, one of them is an index derivative if I understand qqq correctly. That being the case, that position offers a lot more diversification than one stock. On the other hand, the portfolio is not as diversified as some portfolios might be due to the exclusive use of tech stocks. Within the high-tech arena, you could probably pick five stocks that are a little more diversified. And the great weighting of QCOM definitely affects the diversification. Gorilla gamers probably can't avoid noticing that all of the stocks are of companies that sell enabling technologies. Why do I believe that's neither coincidental nor accidental? :) I'm not offering an opinion about how well your portfolio might or might not perform. That's mostly because I can't count that high on my fingers. --Mike Buckley