Forum Archive Index - September 1999

["Brent Wheeler" <brentw@bwcl.co.nz>]

David tells me there are "repeats" in there hence 233 vs 188.  Also we are
getting risk reduction by diversification a bit mixed up with returns.  5 -
6 stocks will deal to about 80% of company based risk provided the 5 -6 are
not totally related to one another (eg, holding Telecom and Telestra
probably does little for diversification).

On the return side I don't think David is purporting to have an "index" -
just saying how his picks turned out.  We have to remember that to get
returns, risks have to be taken.  Unless you have a massive offstetting
investment in bonds or cash $233,000 is a whopping amount to throw at our
paltry market and 5 - 6 carefully sected stocks may well be more manageable
and (percentage wise) offer as good a return.

Dr Brent Wheeler
Director
Brent Wheeler & Co. Limited
AUCKLAND


--------------------------------------------------------------------------
To remove yourself from this list, email sharechat-request@sharechat.co.nz
with "unsubscribe" in the body of the message.