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Gordon, I like the future of bio genetics also, what companies have you
found? Are you watching the IPO market for these new companies? " My
Yahoo" has a nice self -program news page that can include the IPO market
offerings.
PS. I like your diversification idealogy, it's built on experience.
My speculative account ,ie., my trading account, right now includes
TFONY, AMAT jan call options, and APM jan call options. I sold my CSCO
oct call options a week ago.
__Thanks for the post..______________________________
On Fri, 08 Aug 1997 04:56:51 GMT gordon@xxxxxxxxxxx (Guy Gordon) writes:
>On Thu, 7 Aug 1997 18:29:30 -0500, Michael L. Robb wrote:
>
>Rob,
> I am CC'ing this to the Metastock list. You wrote:
>>It's none of my business, but it looks like you are not
>diversified;=20
>>and spread too thin.
>
>Well, I didn't post my portfolio because I'm shy, retiring, and afraid
>of criticism. ;-) I post my trades and holdings to invite
>discussion. First, someone might learn something from them (a bit of
>ego there.) Second, they might tell me something I should know.
>Third, it might encourage others to do the same, and then *I* might
>learn something.
>
>And fourth, it often forces me to defend my trades, techniques, etc.
>IN WRITING. This forces me to put my thoughts in order.=20
>
>
>Which brings us to diversification.
>
>I've been diversified. Didn't like it. Before I started handling my
>own investments, I let my broker pick all my investments. He took the
>job seriously, and like anyone investing other peoples money, did so
>conservatively. He had me in a mix of stocks, bonds, managed futures,
>limited partnerships, you name it.
>
>If judged against, say, US Bonds, his diversified portfolio did OK.
>But when judged against the market, it sucked! =20
>
>So I started cutting down on the diversification. First, I decided
>how much I could risk. My house is paid for, and I do not put that at
>risk. I am a health 45 year old, and expect to continue earning money
>for more than the next 20 years. Therefore, I feel I can afford to
>risk 100% of my savings in the stock market. =20
>
>At first, I used the Peter Lynch method for picking good companies. I
>bought Coke, Home Depot, Boston Chicken, Microsoft, Intel, Hewlett
>Packard, and others. Bought and held for the long term. While I was
>100% in stocks, it was a diversified portfolio.
>
>During the next year, I studied Fundamental Analysis, and studied my
>companies. What I found was that even when you pick the right stocks,
>you can be dead wrong on the timing.
>
>So I started studying Technical Analysis. Let me interject that I
>have a PhD in Physical Chemistry, which makes me technically
>proficient at math, and VERY SKEPTICAL. A good scientist learns to
>guard against personal bias and wishful thinking. TA has an excess of
>both of these.
>
>I have found just ONE THING that works reliably in TA: Trend Analysis
>(sometimes called Momentum.) Note that I said "in TA". I am not
>saying that other investing techniques do not work, such as Value
>investing, Buy and Hold, Bottom Fishing, etc. =20
>
>So now-a-days, I combine FA with TA. I like to find companies with
>good fundamentals, and up trending stocks. =20
>
>I also found out one other thing. It's a lot easier to dig into the
>fundamentals of a company who's business you can understand. For me,
>that's high tech and biotech. High tech is where most of the growth
>is today. Biotech is where it will be tomorrow. =20
>
>So I don't diversify any more. (At least, not for its own sake.) I
>stick to companies I'm interested in, and who's business excites me.
>I know this increases my risk. I expect it to also increase my reward
>(if I do it right.) =20
>
>The opposite of "Don't put all your eggs in one basket" also works:
>"Put all your eggs in one basket, and watch that basket VERY
>carefully."
>
>
>Now your second point, "spread too thin." Well, I don't have just ONE
>egg in that basket. And I LIKE all these companies. I currently own
>about 15 stocks, which is about the max for me. I would be better off
>with only 10.
>
>So, how many stocks do YOU own, and which ones? And why?
>
>
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