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

To: Fred Davis who wrote (22427)	4/7/2000 11:37:00 PM
From: StockHawk	Read Replies (2) \| Respond to of 54805

>> find myself having a desire to own more companies which spreads my "small fry" holdings out to owning a very small position in each of these great companies.<< Fred, consider this statement: Diversification is a strategy used to maintain wealth, concentration is a strategy used to create wealth. It is very tempting to add more and more names to one's portfolio, and no one wants to miss out on the next great one, but IMHO most people would probably be better off with fewer stocks. It is easier to learn about and monitor fewer companies, and having a good understanding of a company gives you the fortitude to hold it during a downturn. I hope this helps a little. StockHawk

To: Fred Davis who wrote (22427)	4/7/2000 11:42:00 PM
From: kumar	Read Replies (1) \| Respond to of 54805

Page 20, RFM, point # 2. : "It uses consolidation, not diversification, as its primary risk reduction strategy for long term holds". cheers, kumar

To: Fred Davis who wrote (22427)	4/8/2000 1:18:00 AM
From: TigerPaw	Respond to of 54805

Since I manage a very small portfolio, My 2 cents .... It's awfully hard to hit a home run, even with Gorillas and Kings. The best thing is to establish a regular savings plan to add to your portfolio (I use payroll deductions). If you keep on investing in Gorillas then sooner or later you are going to get exceptional returns, just don't excpect to make them right away, there is a degree of luck, and perseverence involved. You can get rich slowly. TP

To: Fred Davis who wrote (22427)	4/8/2000 1:45:00 AM
From: mark lo	Read Replies (1) \| Respond to of 54805

If you want to get a majority of the G&K stocks without forking over a lot of cash, take a look at BDH and IAH as investment vehicles. These are HOLDRs Depository Receipts from Merrill Lynch. You get 20 stocks for each HOLDRs. It is a way to get diversification and a method to play G&K.

To: Fred Davis who wrote (22427)	4/8/2000 1:57:00 AM
From: John Stichnoth	Read Replies (1) \| Respond to of 54805

Re constructing a portfolio-- You mention you manage a "small" porfolio. I don't know how small you mean, but I would just add to the responses you've already received--It doesn't make a lot of sense to break up investments into extremely small pieces if the transaction costs will tend to become material. A $12 fee on a $5,000 investment costs 24 basis points. Breaking up the purchase into 4 lots will cost 1 percent. Do that repeatedly through a year, and you've cost yourself some real money. Better to start a program of stock buying, in which you buy just one stock at a time over an extended period. Best, John