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To: Paul Senior who wrote (11373)5/23/2000 8:18:00 AM
From: SBHX  Respond to of 60323
 
No, not all 100%, take 1/2 or some portion. And when you don't trust your own judgment, use a fixed ratio (say 25%-33%) so that if a single stock crosses this threshold of your total portfolio, bring down under that. This is just being purely defensive, and not allowing any single stock to hurt you.

Of course this is also the part that broke down, when every single stock is a tech stock and they all go down, but otherwise, the rule works.