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To: Chuzzlewit who wrote (21084)11/11/1997 10:26:00 AM
From: McNabb Brothers  Respond to of 176387
 
Paul,

Agree with you 100% on all of the above except on the margin! Margin can be used in a number of ways especially in a hedge type of account! In a conservative account if one knows he or she will be coming into some money at some point in the future then he or she could buy on margin and repay it at the date they receive the money! But in now way an individual should buy on margin thinking the stock is going to go up! Thanks for posting what you said for the benefit of others!

Hank



To: Chuzzlewit who wrote (21084)11/11/1997 10:29:00 AM
From: Paul Merriwether  Read Replies (1) | Respond to of 176387
 
Hank, (and Venkie) this is one issue on which we concur 100%. Here are my
diversification rules:

<< 1. Own stock in at least 12 (preferably 15) companies each of which is in a
different business.

2. No company should represent more than about 8 - 10% of the total portfolio.

3. Don't buy on margin.

Regards,

Paul >>

Paul
You might as well buy all mutual funds. For my "safe" investments, that's exactly what I do but the "play" money gotta be played ;)
best regards
-P