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Author: abFatPitch Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 766  
Subject: Re: Are 20 Stocks Too Many Date: 12/9/2005 6:39 AM
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Are our newsletters really advocating that readers buy all of the recommendations? I'm under the impression that instead, they offer monthly recommendations that readers can research further, and from which they can choose which ones to invest in, according to their own assessment and their interest/needs/etc

Hello Selena.

TomG, even from the early days of Hidden Gems, had suggested buying small amounts of each recommendation and building a diversified portfolio of dozens of stocks, a la Shelby Davis. I think this is fine yet I also think TMF should nave an internal consistency particularly for the benefit of new investors of which there are many here.

Currently The Fool seems to be adopting the theme of portfolio concentration across many of the discussions around the site. This is fine also, but I think it important to realize what I would consider to be a bit of conundrum here. The newsletters are very often advertised with headlines promoting theur respective cumulative returns, as they should be as they are in most cases truly outstanding. Yet the only way one could hope to duplicate the advertised returns is to buy each recommendation from that newsletter or else it becomes a matter of luck. Now, this may not be the case for the experienced investor, although this is arguable as well, but it is definitely the case for new investors.

So, can a new investor concentrate a portfolio and still match Stock Advisor's 50% returns without being lucky?

ab
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