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Author: CryingofLot49 Big funky green star, 20000 posts Feste Award Nominee! Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1113  
Subject: Re: The house's money Date: 12/9/2010 2:07 PM
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Jim,

I couldn't agree more, but JJC was simply using that as a metaphor that *most watchers of his show* would understand simply and easier than your thoughtful and well-written post.

He's communicating in a fashion that you don't need, but is most likely to get across what he wants the general public to understand. [i.e. - reduce risk]

Secondly, if you have big gains in NFLX [like you do] it is likely now an outsized position in your portfolio, or it certainly is for those viewers at home who only buy like 4-5 stocks. You do need to rebalance if you put $10k in 5 stocks, and now they are worth 9, 10, 11, 12 and 100.

4) having the intestinal fortitude

FWIW, I don't think this has a single thing to do with whether or not you should reduce, or add, to a position in NFLX. You're letting anchor bias [and emotions] affect your investment process.

best,
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