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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Tweaker who wrote (47183)	6/11/1998 10:14:00 AM
From: John Hauser	Respond to of 176388

Tweaker, I appreciate your response. I agree with you that it can limit your upside, but inversely it can limit your downside. I swapped some Dell for MRK to diversify myself and have seen about 50% upside w/MRK. I have no regrets about that and I don't think I'll have a real picture on this decision until 5 yrs out. INTC just seems really dead right now and I'm just thinking about other opportunities. Dell maybe? LU maybe? More MRK? AOL? Some say don't put all of your eggs in one basket. But my reply is "What if it's a REALY GOOD basket?" Adios, JH

To: Tweaker who wrote (47183)	6/11/1998 1:37:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176388

Tweaker, I don't think anybody has ever argued that diversification enhances profits. Quite the contrary. The argument is that diversification limits risk. The idea is to hold a basket of risky stocks, and the business risk in one stock doing badly (INTC for example) is spread through the portfolio to make the total risk more tolerable. In fact, financial analysts refer to this kind of risk as diversifiable. As a rule of thumb you get the greatest tradeoff between diversification and practicality with around 12 stocks in your portfolio. TTFN, CTC