gold stocks - too diversified?, page-3

Hobo - When dealing with speculative companies I think there is a strong argument for mitigating company specific risk. It seems to me that your invested in gold stocks to catch a move in the gold price, rather than a move in a particular company that you have assessed as being superior.

In that respect I (just my opinion) think you are doing the right thing. Call it sectoral diversification if you will. Focused in a sector, diversified within it.

Why choose 4-5 companies in that sector, where if one goes belly up you've done 20% of your funds. The way it is now you'll only lose 6-7%. Thats more prudent if you ask me.