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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (30991)	5/16/2008 6:08:01 PM
From: Madharry	Respond to of 78748

I cant help but make some commments here. first of all I dont know how reliable that 10% is. I assume that would be someone holding the s&p index fund for many years that doesnt have any fees attached to it. My experience talking to less that financially sophistiated people over the years, which I believe constitutes the bulk of investors is that they are a. the most likely to pull their money out of the stock market after a sharp decline, and to put money in the stock market after a sharp increase. b. when times are tough, they are among the likely candidates to lose their jobs, and have to liquidate their 401 k plans to make ends meet. This is not particulary relevent to your remarks about holding lots of stocks or a few stocks in a portfolio. Most research has shown that the most of the return in a portfolio is market return the second highest component is the sector and last is the individual stock. Not being diversified in a sector cost me dearly in the case of silver. I originally owned cef, paas and sil but unfortunately shifted everything to sil. i am more diversified with the oil and gas plays though not to the extent you are. I am simply incapable of following more than 50 stocks or so and acknowledge my limitations.

To: Paul Senior who wrote (30991)	5/19/2008 11:17:03 AM
From: Madharry	Read Replies (1) \| Respond to of 78748

It looks like bsic is one of those cases where averaging down worked out very well. much better than lightening up has. new high up 13% plus on no news. wish i could tell when to average down and when to bail. I have no idea what the stock is worth now but Ive decided to keep what I have now, as i do have confidence in the ceo who has a good size stake in the company. I picked up a little more end today. everything Ed A. has liked has turned out really well so far.