Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (2284)	1/26/1998 7:36:00 AM
From: andreas fauler	Read Replies (1) \| Respond to of 9256

hi stitch and others, taking a high risk through specialisation offers two possibilities of future behaviour: 1. the one thing you are specialized in is a loser and you lose, too. 2. the one thing you are specialized in is a winner and you win. that means taking a bigger risk opens the possibility to make bigger profit, but also to go down the drain. betting on several horses lowers your risk, but also the chance of profits. (reg. portfolio-strategy) this is true for stocks, products, technologies, customers... that means a company can only allow to specialize in one or two of the three dimensions (products, technologies, customers). in the generalized dimensions you can use wonderful synergy-effects. also companies like microsoft or coca-cola aren't fully specialized. microsoft offers operating systems, productivity tools, web tools, is a web provider, licenses copyrights of digital data... coca-cola, has got several brands e.g. coca-cola, sprite, fanta and alcoholic drinks too. they aren't specialized regarding their productline. soon to be continued