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

To: shamsaee who wrote (25808)	6/4/2000 7:58:00 AM
From: gdichaz	Read Replies (1) \| Respond to of 54805

shamsaee: Handling risk is very much a personal matter - the ability to sleep well at night. IMO it is not a matter of age at all. Actually a retired person has a little more ability to keep up with technologies and the leaders within them, so can handle greater risk. The conventional wisdom of the wall street "wise" that the older you are, the more bonds and CD's you should hold, fits the old days when info was less accessible, not now - unless the specific individual has a low risk tolerance - regardless of his/her age. Having the resources to avoid having to sell is essential. That means keeping money outside of rapidly growing tech stocks and sharply limiting margin (zero is best), but how those outside resources are held is also a matter for the individual's specific circumstances. Gorillas and kings have major swings but have very good long term growth prospects so fit a buy and hold strategy. But no way are they immune from sharp dips down - as many of us have seen recently. Therefore some cash, near cash or other outside resources is essential when the primary investment vehicle is G&K. Just some weekend musing. Best. Cha2

To: shamsaee who wrote (25808)	6/4/2000 10:51:00 AM
From: Mike Buckley	Respond to of 54805

I personally would start reducing exposure to high risk securities as and when I am nearing my financial goals and retirement. Over a ten-year period, I don't know of a lower-risk vehicle than stocks in Gorillas and carefully selected Gorilla-wannabes. I realize that's counter-intuitive to the traditional way of measuring risk, but it's my view. For those who think a bond is safe, if it's a corporate bond you're still making a bet on the corporation's ability to weather the bad times. If it's a corporate or government bond, both are susceptible to the vagaries of inflation. We were lucky that Paul Volker was replaced by Alan Greenspan but I don't know that we'll get so lucky as to have three ardent inflation fighters in a row. --Mike Buckley