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To: GST who wrote (109430)	10/3/2000 1:51:26 PM
From: H James Morris	Read Replies (2) \| Respond to of 164684

Gst, risk takers by their very nature feel the only risk is in stocks they do not own.

To: GST who wrote (109430)	10/3/2000 6:51:21 PM
From: Glenn D. Rudolph	Respond to of 164684

The question is, if you invest in high risk stocks, what can you do to make sure you don't get killed in the process? One could hedge but that cuts down on return. I suggest opening a jewelry store and see what risk is really like. You may find the stock market tame and the associated risk small even with the high beta stocks. If we made a scale where 100 is perfectly safe and 0 is where you are almost certain to lose your money (a lottery ticket for example), where do you want to be? Your risk profile is centered on your business -- lets give your portfolio a score of 70 -- a guess, but also a yardstick. I would guess that on this scale William's "portfolio" comes in around 10-15 -- meaning you should not hold this portfolio unless you are prepared to lose most of the money in that portfolio. Could you make a killing? Yes. Could you get killed? Yes. I suspect or even know my portfolio is not the same as Williams based on the positions he shows in in profile. However, it is also likely our risk tolerance is not the same due to many factors. I have a child, although grown, that I feel I have a responsibility to make sure my stores are doing fine so he may own them down the road. I personally take great pride in my business. I have stated this in the past that I am not risk adverse in the market even though I use real money it to some it is a reasonably large amount. I do not believe William has children nor is he concerned about that issue. I also believe William has more confidence in picking winners in the market than I. The confidence alone reduces perceived risk. This is not undue risk to William. Maybe we should all be knowledgeable enough to be able to see which firm is winning in their space most of the time. That appears to be William's approach from what I can tell. People on this thread DO need to ask, "am I preapared to lose this money -- all of it?" If not, how should I dissipate the risk. These ARE fair questions. This is a fair question and I have asked myself. I could easily do fine with losing my entire portfolio although that is not my plan. I took more risk buying diamonds this year than I have in the market with the most speculative stocks. Go to this URL: zoominternet.net Choose round, then use the pull down menu to choose diamond weight and choose .50 to 9.50, use the pull down to choose color fro D to N and the clarity from FL to I3. Then click on perform search. The total price of theses diamonds are 50% over my cost5 so divide the price by 1.5 and add them up. Then do it with marquise, oval, pear, radiant, heart, etc. and let me know if you think I should worry about a portfolio in the stock market. Glenn