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But, that being said, somehow I still think that common sense dictates some diversification away from "tech" stocks even if the tech companies the port already holds can only loosely be categorized together.

Just to play devil's advocate here - if "tech" is the 2nd industrial revolution then perhaps investing in other than tech is like investing in pack-horse farms or spinning-wheels. In other words, yes you do diversity, but you diversify into the past and away from the future.

I'm not sure I agree with that personally - and as a result I have some non tech (and non-bio-tech/pharma) companies in my portfolio but they have generally underperformed the tech ones by quite a considerable margin.

To be honest GAP is a less efficient form of AMAZON - i.e. its a retailer. Retailers - since they are always the last link on the chain between raw material and consumer - are generally at the mercy of a combination of Christmas, fashion and their suppliers. This is a hard area to make rules.

Perhaps we need to look at other places. Essentially I think we need to think what is the common element of all our rulemakers. Thats simple - its high margin sales and high growth. So if we want to diversify perhaps we need to look at other places where there is reasonable growth and high margins.

For example how about luxury goods (Champage, perfume...)? One of my investments (a good one or so I thought until the last month or 2 when it has declined rather a lot) is Louis Vuitton Moet Hennesy a.k.a LVMH. Of course LVMH - despite owning a huge number of those brands that one just has to have if one is anybody - has a number of disadvantages. The main one is that it's French and is thus somewhat reticent about its numbers and shareholder information. However in the luxury goods market is is absolutely top dog and showing (with Sephora and sephora.com) lots of innovation and rule-making power.

DD
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