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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Pogeu Mahone who wrote (103501)	3/6/2006 9:12:20 AM
From: Knighty Tin	Respond to of 132070

3 doesn't count at all. They all strangle my horse when the Mafia tells them to do it. <G> Risk is most important. The first rule of making money is to not lose it. That being said, the investment itself is only part of risk equation. How much money you have invested in any issue relative to the size of your portfolio is even more important. That's why I was so negative on the folks who were shorting Google calls last year. The risk of the individual security was huge and the damage to the total portfolio couldn't be judged because that risk was open ended. The main thing in investing, as well as poker (which you know better than I do) and horse racing is to make sure the potential reward is greater than the risk. That's why one junk bond is always a bad idea, but the company's stock may be a good idea. You can lose the entire principal if you are wrong on either the stock or the bond. But, with the bond, all you can make is interest and some small amount of appreciation. With the stock, you have unlimited upside.