Thursday, October 25, 2007

What do think about this?

What we learn from our textbook is that we have to diversify our investment and reduce the risk. "Eggs should not be put in one basket". However, Buffet said that "You should put all your eggs in just one basket!!!" What do you guys think about this?

1 comment:

Meng-Ting Tu said...

i think it depends on what kind of stock you invest in.

The stocks that Buffet bought are all leading companies in the industry. This kind of blue chips are less risky than growth stock or small stocks.

Blue chips are more dependable, so it won't have much risk, no need to diversify. But if i buy small stock or growth stocks, i will still do the portfolio to diversify the risk.