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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: waverider who wrote (121936)	7/22/2002 6:19:25 PM
From: Art Bechhoefer	Respond to of 152472

wr -- Last year at this time, I expressed a view on this thread that QCOM shares were too high and would drop from their level near 60 to about 43. I underestimated what the rest of the market was doing, so I didn't factor in those losses and their impact on QCOM. I also suggested selling QCOM shares at one point in 1994, when they appeared to be too high relative to the rest of the telecom group. It's probably better to wait until after the earnings this Thursday before buying. For myself, I already have enough at the moment and don't want to get too heavily involved in just one sector. Though I see QUALCOMM as a good investment, and still probably the best growth opportunity for most U.S. investors over the next five to ten years, I NEVER advocate owning just one stock or emphasizing just one stock in a portfolio. Maintaining a balance is important, and in the last two years, I have advised placing substantial percentages of invested assets in stocks like 3M, Washington Real Estate Investment Trust, FPL Group, AstroPower, Unocal, and Goodrich Aerospace, as well as holding stocks such as Berkshire Hathaway. Each of these stocks lends balance to a portfolio heavy in telecom stocks, and each has certain characteristics that work counter to the losses in telecom. For example, WRIT, which profits from growth in the Washington bureaucracy (no recession there), is up above where it was last year, and is returning about 12 percent a year in terms of yield plus additions to asset value. So to answer your question on capital preservation, I don't do anything fancy, except diversify into companies that look good for the long haul. No short selling, no buying of put options, no index buying or shorting. Art