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

To: nikkei86 who wrote (41245)	1/29/2011 4:56:27 PM
From: Jim P.	2 Recommendations Read Replies (3) \| Respond to of 78615

Nice discussion on diversification. FWIW I am still not well diversified and have 5 positions or less at most times. I think to build wealth it is likelier by concentrating positions while protecting wealth is accomplished by diversifying. I find a really good ideas that I can quantify and understand every few years. The market crash gave me an opportunity to build some wealth. I took 2 positions that I was certain had more intrinsic value than the market gave and have made outsized returns. They were APL and LINE. I still hold them and 300% so far. I will need to diversify soon and the reason is only to protect wealth. My best ideas will probably still be outsized but my issue is that if you have made enough, and I think I am close, to being able to retire at a decent age, it is foolish to risk it by not being diverse. And enough for me is that if near average returns can get me where I want to be then why risk it by being luke warm. Not enough stocks to protect you from bad calls and too many to really keep track of. Worst mistake in the down turn was selling NFLX...what a run on that stock. Best lesson(learned over many years) was invest in something you understand well enough to overcome the fear when the market is screaming sell. Jim