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

To: nihil who wrote (82280)	11/25/1998 9:09:00 AM
From: rll	Read Replies (2) \| Respond to of 176387

"Look at the Dell, MSFT, and INTC 5 or 10 year charts (among others) and tell me if you believe that return and performance are inversely correlated over periods of a year or so." Yes, but we have the advantage of hindsight when comparing the past. One never knows what the future holds and therefore, the risk is correlated to how heavily weighted your portfolio is. I think you'd agree with that.

To: nihil who wrote (82280)	11/25/1998 9:55:00 AM
From: Moominoid	Read Replies (1) \| Respond to of 176387

it is a way of guaranteeing mediocre performance for the faint of heart. It is based on portfolio theory that assumes (but cannot prove) that return and variance must be inversely related Return and variance should be positively correlated. There is plenty of empirical data to back that up though of course there will always be the exceptions. I didn't notice the likes of Soros or Buffett being faint-hearted or under-performing and they are certainly diversified. It just takes much more work to find 10 good ideas rather than one. David