News Focus
News Focus
icon url

irwin

06/29/02 7:25 AM

#94 RE: Conrad #93

Conrad

I understand and agree what you are saying until you said this:
"The crucial thing is that if my assessment is that with all the eggs in 1 basket my risk is lower than with the eggs in 20 baskets then I will stick with that one stock."

Having everything in 1 stock does not reduce risk.

If you mean that you have only x% of your net worth in 1 stock and you have the balance in cash or a home or under the bed,I see what you mean.
But if you have 100% of your net worth in one stock because you feel that your risk is lower being in that 1 stock you are not lowering you risk that way.
Other than this one point I agree with what you have said.
Second.
Can you also explain what you mean when You said (Gut Feelings can be automated).

TIA

Irwin