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

To: Bill/WA who wrote (107530)	4/22/2007 9:43:13 AM
From: Knighty Tin	Respond to of 132070

People who own one stock, but refuse to sell it, either because of capital gains or because they are in love with the issue, are major problems for brokers. Unfortunately for those in Houston, the one stock was often Enron. Exxon, of course, was the biggest one stock holding. I feel much safer with Exxon, but you never know. Worldcom was a pretty big company, as was Lucent. I had a friend who had a client with $4 million in one drilling co. That co. has more than doubled since the rise of oil prices this century, so she now has about $10 million. She loves the stock and has capital gains out the wazoo. I helped my buddy get her out of about $3 million of the stock and into more diversified holdings, including Irfax and First Eagle Global. She also bought some whole life insurance with about 10%. She still has too much of the stock, but now she's not doomed if it fails. I know Bill Gates got rich on one stock, but after a certain level of wealth (if you have $5000 and you're 23 years old, what the hell, take a shot with one stock), you need to protect yourself at all times. And with capital gains at 15%, stop being a cheap creep. <G>