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

To: nikkei86 who wrote (41211)	1/27/2011 10:37:28 AM
From: Jurgis Bekepuris	Respond to of 78622

The problem is that you don't know which stocks are the ones which will return your favorite ten baggers. Please give a methodology on how you can select those "guaranteed" ten-ten-baggers and I will reduce my portfolio to 10 stocks tomorrow. If I had such methodology, I would be at 10 stocks ten years ago. Unfortunately, everything - including Buffett - does not provide good enough selection methodology for me. Maybe you have a selection approach that works, then please share it. So OK, in theory I agree that investor could have better returns with concentrated two stock or ten stock portfolio. The problem is how to select those ten stocks so that you don't have a huge risk and you still get the high return. Until you show how to do it, the theory remains theory. You may think the risk is not there, but I've seen enough stock blowups to know it's there. Bruwin proposed one approach for this. IMHO his approach is still too risky, but others might disagree.