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Subject:  Re: Hershey Quandry Date:  1/10/2006  2:01 AM
Author:  fleg9bo Number:  10289 of 22172

Yesterday, I placed a limit order to sell at $55.00. I know how bad (and futile) it is to try to time the market, but I don't want that order just hanging out there as HSY continues to decline

Drastically reducing your exposure to four stocks that make up 95% of the portfolio you are depending on for your retirment is not market timing, it is good common sense.

In 2000 we had 25% of our portfolio in DW's company stock. It declined 95%. Fortunately the other 75% of our portfolio enabled us to retire anyway, but don't make the same mistake.

Since your basis in HSY is what it was worth at the time of your father's death, your capital gains hit won't be so bad (I'm saying this without knowing anything about HSY's performance since then). Run, don't walk, toward diversification.

If you are not experienced at stock picking, I wouldn't rely on TMF or anyone else for advice on individual stocks. Either get into index funds, find a manager with a great long-term track record, or keep your money in cash until you have learned enough to do it yourself with confidence.

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