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To: Investor2 who wrote (1767)10/22/1997 1:10:00 PM
From: sea_biscuit  Respond to of 42834
 
Yes, I know that very well. That is why I tend to play it both ways! In order to ensure that I pick only quality companies, I insist that the companies that I choose should figure in "Moody's Handbook of Dividend Achievers" or in Bill Staton's "The America's Finest Companies Investment Plan". And whenever a company is dropped from either of the two publications, I get out of the stock. Otherwise, I keep adding money to the portfolio (if I can!). I tend to hold a small portfolio of between 8 and 12 stocks from different sectors, and try to keep it as balanced as possible within reasonable limits.

IMO, this is the lay person's best chance of emulating Buffett. If you noticed, my diversified mutual fund portfolio has a strong international component to it (half of the equity portion is composed of international mutual funds). That is because I don't have an easy and/or convenient way of picking foreign stocks the same way as I can pick the domestic stocks.

Dipy.