"To me Africa Oil looks no less risky as an investment than buying SIAF at a p/e of less than one."
Well in a sense you are right about that snow, both are very high risk plays without a doubt, but usually if you wants fantastic outcome you need to take on alot higher risk.
Grading them on a scale to 10 i would place SIAF at a clear 9 and AOI at between 7-8 perhaps and Apple at 6-7 along with most other competitive cos in us with a high growth. if you wanna aim at companys relatively riskfree between 1-5 you need to lower your exspectations on ROI quite some i suspect. That said most people usually diversify some in different respects, whether you do it by having 25% of the portfolia highrisk and the rest lowrisk or maybe even a moving scale due to worldeconomy and general macro or just by spreading geografically or on sheer amount of equitys hold are all up to personal view and flavour and pace of investment style, basing ones investment on a style not suited on ones mental outlay are usually doomed to start with.
Personally i surely havn´t got your gut to go all in on any or all highrisk plays, i much prefer keeping highrisk to less than 25% of the portfolio even during real favorable periods in the markets, usually the more defensive plays pays rather well even in this climate we seen recently.
Regards.
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