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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Fred Levine who wrote (61947)	3/12/2002 4:21:37 PM
From: Katherine Derbyshire	Respond to of 70976

Diversification reduces risk, but it also reduces potential gain. Exactly where to draw the risk/reward balance is an extremely individual decision. There's also a practical limit to the number of stocks an individual investor can follow closely. It seems to me better to invest in 10 excellent stocks than in 50 mediocre ones. Katherine

To: Fred Levine who wrote (61947)	3/12/2002 6:42:15 PM
From: Sam Citron	Respond to of 70976

what is correlated somewhat is prudence in each of these areas [real estate, foreign stocks, bonds, currency, art, gold, cash, domestic stocks] RE: Foreign stocks. I dabbled in foreign stocks a bit in the 80s but now mostly avoid them mainly due mainly to (1) exhorbitant commissions for all but ADRs; (2) transparency issues; (3) currency risks; (4) political risks and (5) higher research costs. That said, I'm thinking of buying Honda because (a) the cheap yen is helping their exports and (b) I think their new hybrid 5 passenger Civic is going to be a blockbuster success, although they will probably lose money n each one they sell for the next 3 years. I will probably refrain, however, due to issues 2-5 above. RE: ART Have you ever made money trading art? Dealers do it all the time, but I don't know many individual collectors who have been successful at it. Maybe they're too rich and cultured to be friends with me. <g> RE: CURRENCIES and GOLD Are you referring to futures contracts or gold coins? Sam