Hi DaveybMaybe you should be telling me a few things based on...

Hi Daveyb

Maybe you should be telling me a few things based on that sort of portfolio performance...lol.

In relation to diversification, I don't really think a text book will be a huge help, but one on there are plenty on equity investing. What a text will talk about is hw diversifcation can assist to track market performance etc. But for many on this board, who are looking for smaller cap, high risk/reward stocks, it won't assist much.

I guess what I have experienced is that with too many eggs in one basket, you put too capital at risk in too few stocks. I have found that preservation of capital is absolutely paramount if any equity investment(s) fall out of bed, or the market turns.

So I make sure I don't put more than about 25% into my largest investment and generaly keep less than that. It does limit success if one does pick a star, but it also acts to protect you from yourself and something happening in a stock from left field. Hard learned lessons I'm afraid.

regards
DF