QUOTE(pinkdevil88 @ Apr 7 2012, 01:18 PM)
You have no numbers to justify and you say BAC will shoot up to $15 for no reason?? Do you know what is the EPS for BAC? I have no problem if you have a different view, but how do you justify this?
What is the problem to be obsessed with a SINGLE COUNTER? If you know this company inside out, you will be better off investing in a single company as you know when to take profit and when there is still potential upside. Unless you have a billion dollar then diversification will work for you.
Warren Buffett made most of his money from just a few companies, in fact a few trades. He is a strong proponent of a concentrate portfolio. Taking one of his quotation "Diversification is protection against ignorance". His right hand man, CHarlie Munger said “Wide diversification, which necessarily includes investment in mediocre businesses, only guarantees ordinary results”
If you are so afraid and want to diversify your portfolio, you might as well invest in an index fund to ensure you get exactly the same return on the index. That will be the same as investing in all the counters! Good diversification strategy?
I will be glad to invest in a company that has a high% of institutional holding, in fact this is one of my investment criteria as it will provide support for the stock price. If the share price is being pushed up due to the fundamental of the stock, strong future earnings and low PE ratio, I do not see a problem. In fact I would be happy seeing the stock price rising.
PinkDevil - To each its own.. Zamans just offering his view. Nothing personal. Anyway, I'm glad you like AAPL. I'm a long time holder of AAPL too. Make me a lot of dough. Love the company, love the products.. but also like the stock performance but it is just a piece of paper. Z is correct. lots of funds are pumping this.. but they're hedging it with lot of other things. What is the problem to be obsessed with a SINGLE COUNTER? If you know this company inside out, you will be better off investing in a single company as you know when to take profit and when there is still potential upside. Unless you have a billion dollar then diversification will work for you.
Warren Buffett made most of his money from just a few companies, in fact a few trades. He is a strong proponent of a concentrate portfolio. Taking one of his quotation "Diversification is protection against ignorance". His right hand man, CHarlie Munger said “Wide diversification, which necessarily includes investment in mediocre businesses, only guarantees ordinary results”
If you are so afraid and want to diversify your portfolio, you might as well invest in an index fund to ensure you get exactly the same return on the index. That will be the same as investing in all the counters! Good diversification strategy?
I will be glad to invest in a company that has a high% of institutional holding, in fact this is one of my investment criteria as it will provide support for the stock price. If the share price is being pushed up due to the fundamental of the stock, strong future earnings and low PE ratio, I do not see a problem. In fact I would be happy seeing the stock price rising.
All it takes is just one bad quarter.. you'll see this delicious Apple will begin to fall, just like any other company. Enjoy the ride while you can.. and don't forget lock in your some of profits.
Just a heads up guys, I'm out of all my net long trading position for the next few weeks..
Something is brewing up in the bear camp....
Apr 7 2012, 07:13 PM

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