StockFetcher Forums · General Discussion · Risk Schmisk, I'm all in!<< >>Post Follow-up
betyerbottomdollar
169 posts
msg #55659
Ignore betyerbottomdollar
10/12/2007 7:47:39 PM

I have been wondering about just how risky is it holding only a few securities as opposed to a plethora of stocks. The way I see it, if you follow the advice of the professionals and put your eggs in lots of baskets to minimize loss then you are also minimizing your gains. But if you divide your portfolio into 2-3 picks, your gains will average much larger. Of course the risk increases, but isn't that balanced by the return?



Dan-o
19 posts
msg #55668
Ignore Dan-o
modified
10/13/2007 7:52:05 AM

If you manage your risk, under-diversification is no more risky.

StockFetcher Forums · General Discussion · Risk Schmisk, I'm all in!<< >>Post Follow-up

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