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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Haegin who wrote (8138)	12/10/1997 7:31:00 PM
From: Thomas George Warner	Read Replies (1) \| Respond to of 11057

Thomas there is everything wrong with concentrating your investment in 5 or less stocks unless you are talking about a very small investment that you can afford to lose. Diversification always has been and always will be the rule for the PRUDENT investor. SPECULATORS invest as you suggest and there is a big difference. I have kept very accurate trading records for many years and many times diversification has saved my bacon. I classifiy diversification as 10-15 stocks in different sectors. From period 1/1/97 to 8/5/97 made over 40% while holding between 10-15 stocks in various industries. Went entirely to cash on 8/5/97 with a healthy profit. Shortly thereafter thought that I was wise enough to capitalize on two positions that I had analyzed as grossly undervalued, WDC and APM. Lost $40,000 over the period 8/15/97 to 11/28/97, and still do not know how I could have so misread the information. If it were not for the large gains on the diversified portfolio I would be way behind at this time. Just my perspective but learned from many mistakes.