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Re: WithCatz post# 355689

Saturday, 01/07/2012 4:00:06 PM

Saturday, January 07, 2012 4:00:06 PM

Post# of 730032
Catz, I agree that the math does not work universally. A calculation must be made based on individual holdings. That's why I used the phrase "gut feeling" in my post.

I believe this calculation must be made by each investor. Once one does that calculation with their own share count and after calculating the expected outcome, one would have more information to enable one to reassess their holdings ratio between classes. And make any adjustments that may be beneficial.

Too many investors, in general, only consider the reward factor in the risk/reward ratio. Not that anyone here would do that.

I'm just sayin'

Rainbow, that clearly requires one to factor in their personal holdings. If I hold 1 share of P, and 100000 of common, then that's one reality. If I hold 1 share of Commons, and 1000 shares of Ps, then it's a different reality.

Of course, that's an extreme example -- but it shows quickly why the math does not work universally. One has to calculate the effects for themselves, on their own holdings.

...Catz


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