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

To: kumar who wrote (30431)	8/24/2000 8:36:04 PM
From: mauser96	Read Replies (2) \| Respond to of 54805

I interpreted (perhaps incorrectly)Zorba's post to imply that he was going to have only one stock. In any case there is strong value in having some diversity even among gorillas. Just ask those who put everything into QCOM near it's high. While there have been multiple academic studies done about the value of diversity - most show that a dozen or so stocks gives the bulk of downside protection of owning hundreds. As far as I know, no such studies have been done with portfolios devoted to tech stocks or gorillas, so nobody knows what would be the optimum number. Personally, I usually hold 10 to 15 stocks, mostly Gorillas or Kings. Partly this is because it's too difficult to keep up with more than that, partly to keep from being crushed by one bad decision.