whereever I had invested on heresay and especially where I did not understand the working of the company, I ended up loosing money, principally as I did not understand why the stock was going up and when to exit ___________________________________________________________

Basant, its also because sometimes we want to show the prowess of our intellect...its not only about hearsay.... its also caused by doing analysis day-in and day-out. The problem is in arriving at a few which are likely to be the biggest multibaggers...so, in order to seek that elusive goal we go on adding new and new companies....sometimes its the appetite of knowledge which always force you to add more and more companies.....say for instance, like your team.... given a choice I will never be able to boil down my selection to 11 companies.... thats because I have conviction for too many companies...earlier I used to have a chessboard like approach with pawn, bishops and knights.... but I gave that up... as I could not arrive at just 16 companies. Sometimes, its too much conviction that leads you to building up unnecessary diversification in your portfolio. But I must also admit here, that this style has worked for me, although I beleuve the real test will come in a bear market...... but I am glad to feel that I was the only client at my broker's desk when this crash happened....for someway down the line I have immense belief on my companies....

These few posts on this particular thread are very very good. It makes one look-forward, eagerly, to the the next correction/panic selling/crash for pouring more money.

Edited by kulman - 03/Dec/2006 at 7:10pm

it is a signal for big problem...but again the pattern can change....