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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Venkie who wrote (19022)	10/24/1997 1:59:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176388

Venkie, here's a bit of unsolicited advice: diversify your portfolio. Most stock in the same industry tend to move together, so investing in both DELL and CPQ is not real diversification. Try to pick the best one in any particular industry and then move on to another industry. For example, about 50% of my portfolio is in hi-tech, but that 50% is spread out into a number of different industry groups with little overlap. I've been touting the oil services sector here for a couple of months (primarily to Cricket), and this portion of my portfolio is up over 20% in the last month or so, and is up over 125% in the last 6 months (I own ESV and VRC). Similarly, personnel services constitute about 8% of my portfolio (RHI), and this stock has performed very well until just recently. There are two kinds of risk in investing: business risk and market risk. The kind of down-draft we saw yesterday and this morning is an example of market risk. But business risk can be diversified away. Your experience with semis is a good example of this. By holding a well-diversified portfolio of 12-15 stocks you can diversify away about 90% of the business risk. My portfolio is not as well diversified as it should be since about 20% is in software companies (CA, MCAF and PSFT; however these companies do target different markets). Nevertheless, my portfolio is up (albeit marginally) from last week. I hope this approach helps. Regards, Paul