Diversification or not?

[#1]

Some comments on whether to diversify your portfolio or not? Do you buy different shares in different industries or do you buy more shares of what you have in your current portfolio from the same industry?, (from industries you know and understand). If diversification is the answer, how far do you take it? For me diversification means lower risk but also lower return?

[barry_1]

yes

[#3]

Speakin of diversification..where's Naomi these days..? Too busy watchin the sun set over the Long Tom to post anymores, huh? Tell her we say hi anyways..

[Major]

By all means diversify - it helps to sleep at night. I wouldn't buy competing industries, rather look for best in class from each sector. I hold between 15-20 stocks for the long term, with <10% of my portfolio in any 1 stock.

[venice]

Shares in different sectors cycle at different times and even shares in one sector will perform better than others in the same sector. I don't believe in diversification at all I believe in timing the market to benefit the sector that is performing. i.e Platinum had a good run and will have more but not at present however banks did well just about when platinum tailed off. Banks will slow and should tail off as retailers get going with some overlap here and there and I'm not even incluiding shorting the market. The opportunities are endless. If you like diversification and holding over a long period a unit trust or ETF offers better value IMO.

[surfer]

Well the rich have become very rich from focus(ie no diversification at first) eg bill gates,rmb trio,bill venter etc.but suppose those are the succeess stories not the failures.Also they divesified after they became rich.so whats my point do what works for u