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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: semiconeng who wrote (142466)	8/30/2001 1:31:05 PM
From: GVTucker	Read Replies (3) \| Respond to of 186894

One last thought regarding diversification: Everything else being equal, I would rather that the companies that I invest in not be diversified. It isn't as if I want increased risk. But I can diversify my portfolio myself. There is no advantage to lowering the risk of my overall portfolio if one of the companies that I choose diversifies; if I want more diversification, I'll do that, with more of an eye toward what makes sense for me. Granted, a lot of times there are synergies that can be obtained when a company enters a business that is related to their existing core. In the end, though, synergies are usually overstated. In the specific instance of Intel, I don't see where the synergies are all that great when it comes to venture capital or communications. If I want either in my portfolio, I can choose among the vast number of venture cap companies or communications companies. When it comes to Intel's investments in those two specific areas, I can see where it makes sense for Intel management, because it keeps the potential for the growth rate to stay at the historically high levels. But I really don't see the advantage for Intel shareholders.