3 ms·

Depends on life goals. If your primary goal is to amass further wealth, large bets on single items/industries can pay off very well. However, if your goal is to

by gte910h 16y ago

Depends on life goals. If your primary goal is to amass further wealth, large bets on single items/industries can pay off very well. However, if your goal is to not lose wealth, then diversification is a very good strategy. The OP is in the latter school with these particular investments. Additionally, I find it ironic you bring up Buffett: Berkshire is diversifying out of insurance :D http://www.financialexpress.com/news/warren-buffett-scouts-for-buys/755525/ http://www.financialexpress.com/news/warren-buffett-scouts-f... >Foremost, though, was his acknowledgment of the need for Berkshire to expand its non-insurance businesses, a broad collection that most prominently includes the railroad Burlington Northern and the electric utility MidAmerican.

jsarch 16y ago
Expanding on your advice: when diversifying it helps to not throw darts. It may be best to not have investments only in tech, auto, health, etc., but it's quite another to randomly choose a company or two in different sectors. Unsolicited advice ;-): * Tech: ARMH over MSFT over FB (phones/tablets need to be low, low power and P/E of FB seems egregious) * Auto: VLKAY over F over GM (100MPG TDI trumps "made in USA" trumps bankruptcy) * Health: ILMN (NGS is the next $100BB market http://bit.ly/fYehBI http://bit.ly/fYehBI ) (OP: I'd be more than happy to be a "trial run" for your angel investing. ha! ;-)