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Pastimes : SI International Ope' Stock Picking Contest -- Ignore unavailable to you. Want to Upgrade?

To: michael j. brown who wrote (2243)	11/10/1998 2:12:00 AM
From: Rex Dwyer	Read Replies (2) \| Respond to of 2640

Well rounded portfolios continue to move up in rank, again! Anyway, not to beat a dead horse. My not so simple point was that a portfolio gaining 20% where all stocks were ahead 20% is superior to a portfolio gaining 20% where one stock was ahead 100% and all others were ahead 0%. This is just a case of one portfolio being more diversified than the others. You are more vulnerable to being knocked out of the ring. For instance, if tomorrow VIP (+144%), a big part of your portfolio, goes to zero, you'd be at +16.15%. Whereas if Gary Burton's leader, ASYT (+87.62%) goes to zero, he's ahead at +19.6%. You were more vulnerable before today. The comment on laggards was that your portfolio had an extreme winner, VIP. The laggards were your other stocks earning less than your total portfolio gain. If your laggards move up, the portfolio is more balanced with more protection. Anyway, this does not prove who will win. I use this observation when analyzing money managers' performance to guess consistency. Its all fun and games... till someone shoots their eye out. Forest, having a great time... Rex