re: What is your largest single holding?

quote:

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It's just higher risk for higher risk. You are confusing volatility with returns.

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Not really.

I just left a lot of it unsaid as implicit. Tinged with a little bias to how I view stocks.

What you said is true if you are just buying blue chips just because they are blue chips.

I don't understand this at all personally. Just buy mutual funds if you are chasing labels.


The higher risked for higher gains comment comes from when you think a particular company is undervalued due to you seeing the potential for growth that stands a good chance of exceeding the average market growth for the year.

For instance, I bought STX when they were 20 some years back because they were flushed with more cash than they knew what to do with due to the tsunami shutting down their competitor for a while, they were using it to buyback stock (a huge positive sign in my eyes), and their R&D department was the furthest of anyone in expanding and surviving in the future market.

Sold it after it more than doubled in value over the past 2 years and rolled that money into a mutual fund.

Not a fan of buy and hold of a particular company's stock. Long term positions as long as a decade, sure.....but a sale is pretty much always in my eye when it comes to individual stocks.